The Definition of Internal Audit Includes All of the Following

question 79

Multiple Choice

The definition of internal audit includes all of the following except

• A)independence and objectivity.
• B)provision of assurance and consulting activity.
• C)determination of efficient and effective performance.
• D)additional value and improved operations.

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Definitions:

Indirect Method

A way of reporting cash flows from operating activities by starting with net income and adjusting for non-cash transactions.

Retained Earnings

The portion of net income that is not distributed to shareholders as dividends but is retained by the company to reinvest in its core business or to pay debt.

Reported Net Income

The total profit or loss of a company after all expenses and taxes have been subtracted from total revenue, as shown on the income statement.

Direct Method

An approach to preparing the cash flow statement where actual cash inflows and outflows from operational activities are listed.