What Reason Can Be Given for the Importance of Internal

question 22

Multiple Choice

What reason can be given for the importance of internal auditing in multinational corporations?

• A) A serious lack of external auditors available to audit an international company
• B) A growing demand for risk management skills possessed by internal auditors
• C) Reluctance by multinational corporations to hire external auditors to comply with international regulations
• D) Decline in the reputation of external auditors

Understand different types of perceptual errors and biases in organizational behavior.

Identify and explain how perceptual tendencies such as the halo effect, fundamental attribution error, stereotyping, and selective perception influence interpersonal interactions and decision making in the workplace.

Recognize the impact of personality traits on individual behavior in organizations.

Explain the role of projection in attributing personal characteristics to others within a professional context.

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Definitions:

Individual Amounts

Refers to the specific figures relating to financial transactions or balances that pertain to a single entity or account.

Perpetual Inventory Method

An inventory management technique where updates to inventory records are made immediately following each transaction, giving real-time inventory levels.

Journalize

The process of recording business transactions in the accounting journals as part of the double-entry bookkeeping system.

Terms 2/10, N/30

Payment terms indicating a 2% discount is available if paid within 10 days; otherwise, the full (net) amount is due in 30 days.