Which of the Following Is Not a Relevant Aspect of Internal

question 51

Multiple Choice

Which of the following is not a relevant aspect of internal controls over estimates?

• A)External auditor involvement in developing assumptions
• B)Adequate review by appropriate levels of authority
• C)Comparison of prior estimates with subsequent results
• D)All the above are relevant aspects of internal controls over estimates.

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Definitions:

Net Income

The amount of money that remains after all operating expenses, interest, taxes, and dividends have been deducted from total revenue.

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for non-cash transactions and changes in working capital.

Book Value

The net value of a company's assets as reported on the balance sheet, calculated as total assets minus total liabilities and intangible assets not readily marketable.

Office Equipment

Tangible property such as desks, chairs, and computers used in the daily operations of an office.