In Your Own Words, Describe How the Institute of Internal

question 30

Essay

In your own words, describe how the Institute of Internal Auditors (IIA)defines internal auditing.

---

Definitions:

Direct Labor

The labor directly involved in the manufacturing of a product, which can be easily traced back to that product.

Fixed Overhead

Refers to the static expenses that occur regardless of the level of production or business activity, such as rent, salaries, and insurance.

Direct Labor

The labor costs directly tied to the production of goods or services, including wages for workers who physically manufacture a product.

Raw Material

Fundamental materials in their original, altered, or partially processed forms that serve as inputs for manufacturing.