The Partial or Complete Outsourcing of Internal Audit Activities Is

question 80

Multiple Choice

The partial or complete outsourcing of internal audit activities is made to public accounting firms or to other specialized firms that perform which of the following types of services?

• A)primarily risk,control,and audit activities.
• B)attestation services as demanded by market place.
• C)operations analysis and risk analysis.
• D)analytical and substantial procedures.

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Definitions:

Floatation Costs

Expenses incurred by a company in issuing new securities, including underwriting fees and legal and administrative fees.

Cost of Retained Earnings

The rate of return that shareholders expect on the earnings that a company keeps and reinvests in its operations.

Risk Premium

The extra return expected by an investor for holding a risky asset rather than a risk-free asset.

Flotation Costs

The costs incurred by a company in issuing new securities, including underwriting, legal, and registration fees.