Internal Auditors Are Responsible to

question 26

Multiple Choice

Internal auditors are responsible to

• A) the board of directors.
• B) management.
• C) both A and B.
• D) neither A nor B.

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Definitions:

Uncollectible

Debt or receivables that are considered impossible to collect, potentially due to the debtor's inability to pay.

Budgeted Cash Disbursements

Budgeted cash disbursements are forecasted cash payments during a specific period, part of cash flow planning.

Bad Debts

Accounts receivable that are considered uncollectible and are written off as a loss.

General Operating Expenses

These are the day-to-day expenses necessary for the management and administration of a business, such as rent, utilities, and payroll.