Because of the Need for Objectivity in Internal Audit Activities

question 38

True/False

Because of the need for objectivity in internal audit activities, the Institute of Internal Auditors recommends that the Chief Audit Executive report directly to the corporate controller.

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Definitions:

Job Order Cost System

An accounting system used to accumulate costs associated with a specific production batch or job.

Raw Materials Inventory

Raw materials and components that a company holds for future use in the production process to create goods and services.

General Ledger

The comprehensive set of accounts that shows all transactions of a business, serving as the main accounting record.

Accumulating Manufacturing Costs

The process of collecting and categorizing all costs involved in producing goods.