In Assessing the Competence of the Internal Audit Function,an Independent

question 70

Multiple Choice

In assessing the competence of the internal audit function,an independent CPA most likely would obtain information about the

• A) Quality of the work of the internal audit function.
• B) Organization's commitment to integrity and ethical values.
• C) Influence of management on the scope of the internal audit function duties.
• D) Organizational levels to which the internal audit function reports.

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Definitions:

Avoidable Cost

Expenses that can be eliminated if a particular decision or action is not pursued.

Special Order

A special order is an order for goods or services that is outside the company's normal scope of operations or production schedule, often requiring special pricing or terms.

Minimum Selling Price

The lowest price at which a product can be sold to cover its production costs without making a loss.

Constrained Resource

A limited resource that restricts a company's ability to produce goods, deliver services, or achieve its objectives.