What Is the Primary Role of Internal Auditing in a Multinational

question 11

Multiple Choice

What is the primary role of internal auditing in a multinational corporation?

• A) To assist the external auditors in completing the financial statement audit in a timely fashion
• B) To make sure that employees comply with local customs and traditions
• C) To ensure that corporate policies and procedures are being followed and to assess operating efficiency
• D) To prepare the consolidated financial statement of the corporation in compliance with international accounting standards

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Definitions:

Average Cost

The total cost of production divided by the quantity of output produced, representing the cost per unit of output.

Marginal Cost

The rise in overall expenses incurred from manufacturing an extra unit of a good or service.

Economic Profit

The separation between total proceeds and cumulative costs, covering both explicit financial outlays and implied expenses.

Opportunity Costs

The loss of potential gain from other alternatives when one particular alternative is chosen over others.