Which of the Following Would Most Likely Be Used as Performance

question 14

Multiple Choice

Which of the following would most likely be used as performance criteria for an internal audit?

• A)Existing relevant policy statements, manuals, laws, or regulations, or defined by the auditor for each operational audit.
• B)Australian Accounting Standards.
• C)The same criteria used to report on the internal control structure over financial reporting.
• D)Australian Auditing Standards.

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Definitions:

Operating Cash Flows

The cash generated from the normal operations of a business, excluding cash movements from investing and financing activities.

Depreciated

Refers to the decrease in value of an asset over time due to wear and tear, age, or obsolescence.

Salvaged

The recovery of value from an asset that has been damaged, discarded, or no longer useful in its original form.

Depreciation Tax Shield

A reduction in taxable income resulting from the allowance for depreciation expenses, which ultimately decreases tax liabilities.