Which of the Following Is a Difference Between an Internal

question 15

Multiple Choice

Which of the following is a difference between an internal auditor and an external auditor?

• A) An internal auditor conducts the audit because a deficiency has been identified, whereas an external auditor conducts audits on a recurring basis.
• B) An internal auditor manages accounting and internal control of an organization, whereas an external auditor examines the financial data of an organization.
• C) An internal auditor's reports are used by the users of the financial statements, whereas the external auditor's reports are used by the management and internal auditor.
• D) An internal auditor reports on the level of compliance with a company's internal policies, whereas the external auditor reports on the level of compliance with external laws and regulations.

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Definitions:

Monopoly Profit

The excess earnings that a monopolist can secure over and above the earnings that could be achieved in a competitive market, due to the control over market prices.

Purely Monopolistic

A market structure in which a single company exclusively owns, produces, and sells a specific product or service, facing no competition.

Profit-Maximizing

A strategic goal of firms to achieve the highest possible profit by adjusting production volume, pricing, and other operational aspects.

Price

The amount of money or goods required to purchase a product or service.