In Assessing the Competence of the Internal Audit Function, an Independent

question 30

Multiple Choice

In assessing the competence of the internal audit function, an independent CPA most likely would obtain information about the:

• A)quality of the work of the internal audit function.
• B)organization's commitment to integrity and ethical values.
• C)influence of management on the scope of the internal audit function duties.
• D)organizational levels to which the internal audit function reports.

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Definitions:

Accounts Receivable

Money that clients are required to pay to a company for goods or services received but for which payment has not yet been made.

Operating Section

A component of the income statement where the primary revenues and expenses of a company's core business activities are detailed.

Interest Expense

The cost incurred by an entity for borrowed funds over a particular period of time, typically expressed as a rate of the principal.

Statement of Cash Flows

A financial document that provides a detailed analysis of a company's cash inflow and outflow over a certain period, showing how the company's cash position changes.