Which of the Following Is a Main Function of Internal

question 20

Multiple Choice

Which of the following is a main function of internal auditing in multinational corporations?

• A) Preparing the annual report to corporate shareholders
• B) Selecting independent members for the board of directors
• C) Helping external auditors with the financial statement audit
• D) Monitoring risks and assessing their effect on the company

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Definitions:

Dishonored Note

A promissory note that has not been paid by the maker at the maturity date.

360-Day Year

An accounting convention that simplifies interest calculations by assuming each month has 30 days, totaling 360 days for the year.

Interest Calculation

The process of determining the charge for the use of borrowed funds or the return on invested funds, typically expressed as an annual percentage rate.

Accrued Interest

Interest that has been incurred but not yet paid or received.