Which of the Following Is Not Explicitly a Part of the Definition

question 14

Multiple Choice

Which of the following is not explicitly a part of the definition of internal auditing contained on the IIA's website?

• A) Internal auditing is an objective assurance activity.
• B) Internal auditors should help external auditors complete the annual financial statement audit.
• C) Internal auditing should help an organisation accomplish its objectives.
• D) Internal auditing is designed to add value and improve an organisation's operations.

Understand the legal liabilities and responsibilities of accountants under the Securities Exchange Act of 1934 and the Securities Act of 1933.

Identify the conditions under which accountants can be held liable for fraud and misrepresentation in financial reporting.

Describe the legal consequences of preparing or assisting in the preparation of false tax returns as stipulated by the Internal Revenue Code.

Recognize the professional responsibilities of accountants in preparing financial statements and providing opinion letters.

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Definitions:

Liability Account

An account on a company's balance sheet that represents debts or obligations that the business needs to pay off in the future.

Related Revenue

The income generated from activities that are directly related to the main business operations.

Accrued Expenses

Expenses that have been incurred but not yet paid or recorded, to be recognized in the accounting period they are incurred.

Asset Account

An asset account is a category within a company's general ledger that shows the value of all owned assets that have economic value and can provide future benefits.