To Promote Operational Efficiency, the Internal Audit Department Would Ideally

question 44

Multiple Choice

To promote operational efficiency, the internal audit department would ideally report to

• A) line management.
• B) the PCAOB.
• C) the Chief Accounting Officer.
• D) the audit committee.

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Definitions:

Accounts Payable

Short-term liabilities or debts a company owes to its creditors for goods and services purchased on credit.

Inventory

The total stock of goods or materials a company holds for the purpose of resale or production.

CCA Depreciation

Capital Cost Allowance, a system in Canada that determines how a business can claim depreciation on tangible capital assets for tax purposes.

FIFO

"First In, First Out," an accounting method for valuing inventory where the oldest items are sold first.