Which of the Following Statements Is True of Internal Auditing

question 124

Multiple Choice

Which of the following statements is true of internal auditing?

• A) The primary client is the investor in the company.
• B) The primary nature of services include assurance and consulting.
• C) The parties receiving assurance are regulatory agencies and stockholders.
• D) Internal auditing must be responsible for gathering evidence in all audits, including external audits.

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Definitions:

Stock Prices

The market value of a company's shares, fluctuating based on supply and demand, corporate news, and market conditions.

Synergistic Benefits

The advantages or positive outcomes that arise when two or more entities (such as companies or processes) combine or interact, leading to a result that is greater than the sum of their separate effects.

Closely Held Firm

A business entity where a small group of shareholders hold a majority of the ownership and it's not publicly traded.

Stabilize Earnings

Efforts or strategies used by businesses to maintain consistent and predictable profit levels despite market fluctuations.