Which of the Following Best Describes Internal Auditors' Responsibilities Regarding

question 22

Multiple Choice

Which of the following best describes internal auditors' responsibilities regarding their entity's policies, plans, procedures and applicable laws and regulations? Internal auditors:

• A)have a responsibility to develop appropriate policies, plans and procedures, and they are responsible for monitoring compliance with all applicable laws and regulations.
• B)have no responsibility regarding these matters because becoming involved with them would make internal auditors members of management.
• C)are responsible for evaluating whether the systems are adequate and effective and whether the activities that are audited comply with appropriate requirements.
• D)are only responsible for compliance with policies, plans, procedures, laws and regulations that apply to internal audit.

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Definitions:

Cost of Goods

The total direct costs attributable to the production of goods sold by a company.

Manufactured

The process of making products from raw materials through various procedures including cutting, shaping, assembling, and finishing.

Schedule of Cost

A detailed report summarizing the types and amounts of costs incurred by a company.

Goods Manufactured

Items that have been completed through the manufacturing process and are ready for sale.