To Provide for the Greatest Degree of Independence in Performing

question 21

Multiple Choice

To provide for the greatest degree of independence in performing internal audit activities, the internal audit function most likely should report to the:

• A)vice-president-finance.
• B)corporate controller.
• C)audit committee of the board of directors.
• D)corporate stockholders.

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Definitions:

Subsidiary Ledger

A detailed ledger that contains all the transaction details of a specific general ledger account, aiding in maintaining accurate financial records.

Customer Account Activity

A record of all financial transactions that have occurred on a customer's account within a given period.

Accounts Receivable Ledger

A ledger that records sales made on credit, tracking the amounts owed by customers to the business.

Cash Payments Journal

An accounting ledger used to record all cash payments made by a business, excluding cash payments to creditors.