Which of the Following Is NOT Explicitly a Part of the IIA's

question 23

Multiple Choice

Which of the following is NOT explicitly a part of the IIA's definition of internal auditing?

• A)Internal auditing is an objective assurance activity.
• B)Internal auditing is a consulting activity.
• C)Internal auditing should help an organization accomplish its objectives.
• D)Internal auditors should help external auditors complete the annual financial statement audit.

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Definitions:

Diluted Earnings

Represents the earnings per share (EPS) if all convertible securities were converted into common stock.

Dilutive

Referring to a financial action or arrangement, such as the issuance of new shares, that decreases an existing shareholder's percentage of ownership.

Antidilutive

Refers to financial transactions or securities that, if exercised or converted into common stock, would increase earnings per share.

Treasury Stock Method

An accounting method used to calculate the number of shares outstanding when considering stock options and warrants, assuming these are exercised and the treasury stock is sold.