Which of the Following Is True of Internal Auditing

question 8

Multiple Choice

Which of the following is true of internal auditing?

• A)Only serves the audit committee of the board of directors
• B)Primary nature of services include assurance and consulting
• C)Is required to report activities and department findings to external stakeholders annually
• D)Independence and objectivity are not relevant because they are employees of the company

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Definitions:

Self-Serving Bias

A common tendency for individuals to attribute their successes to internal factors while attributing failures to external factors.

Cognitive Biases

Misperceptions or misunderstandings that cause systematic errors. Most result either from heuristics that are prone to systematic errors or because the brain is attempting to solve a type of problem (such as a calculus problem) for which it was not evolutionarily evolved and for which it has little innate capability.

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.

Behavioral Economists

Researchers focusing on the impact that psychological, cognitive, emotional, cultural, and social elements have on the economic decisions of individuals and organizations.