According to the Standards, Which of the Following Best Describes

question 351

Multiple Choice

According to the Standards, which of the following best describes the responsibility of the chief audit executive (CAE) for approving the final engagement report? • The CAE is responsible for obtaining management approval before issuing the final report. • The CAE has overall responsibility for the report but can delegate the review and approval of the report. • The CAE is responsible for obtaining senior management's approval before releasing the final report. • The CAE is responsible for approving to whom and how the final report will be disseminated.

• A) 1 and 3 only
• B) 1 and 4 only
• C) 2 and 3 only
• D) 2 and 4 only

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Definitions:

Fixed Assets

Fixed Assets are long-term tangible assets, such as buildings, machinery, and equipment, used in the operations of a business and not expected to be converted to cash within a year.

Current Assets

Assets that are expected to be converted into cash, sold or consumed within one year or within the operating cycle of a business, whichever is longer.

Intangible Assets

Non-physical assets that have value, such as patents, trademarks, and copyrights, known for their long-term benefits to a company.

Gain on Sale

The profit recognized when an asset is sold for more than its carrying amount.