The Auditor's Consideration of a Private Company's Internal Control Is

question 89

Multiple Choice

The auditor's consideration of a private company's internal control is:

• A)required by GAAP.
• B)required by GAAS.
• C)required by the IRS.
• D)recommended by the SEC.

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Definitions:

NPV

Net Present Value (NPV) is a financial metric that calculates the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Cash Flow

The overall movement of capital entering and leaving a firm, which directly affects its solvency.

IRR

The Internal Rate of Return is a financial measure utilized in the evaluation of capital investments to determine their expected profitability.

Cash Flow

The overall volume of financial resources circulated within and out of an enterprise, affecting its solvency.