When Preparing an Audit Report,an Internal Auditor Must Convince Management

question 106

Multiple Choice

When preparing an audit report,an internal auditor must convince management to take action concerning the report's findings.When reporting on an audit finding,an auditor must include some key elements about that finding in the report.These key elements are

• A)condition,criteria,cause,effect,and recommendation.
• B)condition,criteria,cause,effect,and requirement.
• C)condition,source,cause,effect,and recommendation.
• D)location,criteria,cause,effect,and recommendation.

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Definitions:

Doubtful Accounts

Receivables that a company is unlikely to collect, representing amounts owed by customers that might eventually be written off as bad debts.

Operating Activities

Business actions that relate directly to the production, sale, and delivery of a company's goods or services, reflected in its cash flow.

EBIT

Earnings Before Interest and Taxes, a measure of a firm's profit that excludes interest and income tax expenses.

Income Statement

A financial statement showing a company's income, expenses, and profits over a specified period, typically a quarter or year.