Which of the Following Statements Regarding Internal Auditing Is Not

question 38

Multiple Choice

Which of the following statements regarding internal auditing is not true?

• A)Internal auditing can improve an organisation's operations by providing guidance for management decisions.
• B)Internal auditing can improve an organisation's operations by providing guidance for more efficient business operations.
• C)Internal auditing is a subjective assurance and consulting activity designed to add value and improve an organisation's operations.
• D)Internal auditing is undertaken by professionals who evaluate and improve an organisation's risk management,control and governance processes to add value to the organisation.

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Definitions:

Economies of Scale

Refers to the cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, leading to a decrease in the per-unit cost as output increases.

Diseconomies of Scale

The situation in which the cost of producing each individual unit rises when a company's production volume grows, often resulting from inefficiencies and a rise in complexity.