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:

Discount Rate

An interest rate that the Federal Reserve charges banks for short-term loans, influencing economic activity by setting the cost of borrowing money.

Cash Discounts

A reduction in the invoice price offered by sellers to buyers for prompt payment of their bill.

Interest Days

The number of days over which interest is calculated on a loan or investment.

Non-Interest-Bearing Note

A financial instrument that does not accrue interest over time, meaning the borrower pays back only the principal amount borrowed.