Independence of Internal Auditors Is Enhanced Appropriately by Having the Internal

question 37

Multiple Choice

Independence of internal auditors is enhanced appropriately by having the internal audit department report to the:

• A) controller.
• B) board of directors.
• C) external auditor.
• D) treasurer.

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Definitions:

Short-Term Investments

Investments that can easily be converted into cash, typically within a year.

Balance Sheet

This document outlines the resources, debts, and equity of the investors of a business on a certain date.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services that have been delivered but not yet paid for.

Inventory

The term for goods and materials that a business holds for the ultimate goal of resale.