Which of the Following Is Not One of the Types

question 65

Multiple Choice

Which of the following is not one of the types of internal audits?

• A)A review of the corporate organizational structure and reporting hierarchies.
• B)An examination of procedures for reporting and disposing of hazardous waste.
• C)A review of source documents and general ledger accounts to determine integrity of recorded transactions.
• D)A comparison of estimates and analysis made before purchase of a major capital asset to actual numbers and results achieved.

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Definitions:

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects cash from its credit sales by dividing net credit sales by average accounts receivable.

Inventory Turnover

A measure of how frequently a company sells and replaces its stock of goods during a period, indicating the efficiency of inventory management.

Asset Management

An orderly process for building, running, maintaining, and disposing of assets in a way that minimizes expenses.

Profitability

A measure of the efficiency of a company in generating profits from its operations, often expressed as a percentage of revenues.