According to the Standards, the Internal Audit Activity Must Evaluate

question 199

Multiple Choice

According to the Standards, the internal audit activity must evaluate risk exposures relating to which of the following when examining an organization's risk management process? 1. Organizational governance. 2. Organizational operations. 3. Organizational information systems. 4. Organizational structure.

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

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Definitions:

Ending Inventory

The cumulative worth of all products a company holds in inventory at the conclusion of a financial period.

Beginning Inventory

The value of all inventory held by a company at the start of an accounting period, before any purchases or sales have occurred.

Accounts Receivable Turnover

A financial ratio measuring how many times a company collects its average accounts receivable balance within a certain period.

Average Accounts Receivable

An accounting metric that represents the average amount of money owed to a company by its customers over a specific time period.