What Reason Can Be Given for the Importance of Internal

question 32

Multiple Choice

What reason can be given for the importance of internal auditing in multinational corporations?

• A)a serious lack of external auditors available to audit an international company
• B)a growing demand for risk management skills possessed by internal auditors
• C)reluctance by multinational corporations to hire external auditors to comply with international regulations
• D)decline in the reputation of external auditors

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Definitions:

Expenses Against Revenues

The matching principle in accounting that involves recording expenses in the period in which they helped to generate revenues.

LIFO Perpetual

A perpetual inventory system that uses the Last-In, First-Out method to account for inventory costs, where the most recently acquired items are considered sold first.

FIFO

First In, First Out, an inventory valuation method where goods purchased or produced first are sold or used first.