To Provide for the Greatest Degree of Independence in Performing

question 35

Multiple Choice

To provide for the greatest degree of independence in performing internal auditing functions, an internal auditor most likely should report to the:

• A)chief financial officer.
• B)chief executive officer.
• C)audit committee.
• D)shareholders.

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Definitions:

Common Stock Account

An equity account that represents the ownership interest of shareholders in a corporation, recorded at par value or issued price.

Stock Dividend

A dividend payment made in the form of additional shares of the issuing company, rather than as cash.

Additional Paid-In Capital

The excess amount paid by investors over the par value of the stock during the issuance of shares.

Treasury Stock

Securities that were initially distributed to the public but later repurchased by the issuer, thus lowering the volume of shares in circulation.