The Institute of Internal Auditors Professional Practice Standards Require That

question 75

Multiple Choice

The Institute of Internal Auditors Professional Practice Standards require that internal auditors should be independent of:

• A) their employer.
• B) the controller's function within their organisation.
• C) the line function within their organisation.
• D) the activities they audit.

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Definitions:

Earnings per Share

A measure of a company's profitability, calculated as the net income divided by the number of outstanding shares of its common stock.

Net Income

The total earnings of a company after deducting all expenses, taxes, and costs from its total revenue.

Common Shares

Equities owned in a corporation, representing a share of the company's profits and a right to vote on certain matters.

Acid-Test Ratio

A financial metric used to determine a company's short-term liquidity position by comparing its most liquid assets (excluding inventory) to its current liabilities.