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:

Arbitrage Opportunity

A situation in which it is possible to simultaneously buy and sell an asset or commodities in different markets to profit from price differences.

Long Position

The act of owning or buying an asset with the expectation that its value will increase over time.

Short Position

An investment strategy where an investor sells a security with the intention to buy it back later at a lower price, expecting the security's price to fall.

Negative Alphas

A metric indicating that an investment has underperformed relative to its benchmark, adjusted for the level of risk.