In Management's Internal Control Report That Is Now Required of All

question 70

Multiple Choice

In management's internal control report that is now required of all public companies, which of the following does not have a direct effect on a company's internal control system?

• A) internal auditors
• B) independent accountants
• C) Board of Director's audit committee
• D) Board of Trustees

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Definitions:

Accrued Interest

Interest on a loan or bond that has accumulated but not yet been paid.

Maturity Value

The amount payable to an investor at the end of a fixed term, encompassing the principal and the interest earned or dividends received.

Principal Value

The original sum of money invested or loaned, prior to any earnings, interest, or loss.

Term Deposit

A banking term for a fixed-term investment where money is deposited at an agreed interest rate and cannot be withdrawn until the term has expired without incurring a penalty.