The Internal Audit Profession Has Emerged and Has Become Active

question 10

Multiple Choice

The internal audit profession has emerged and has become active for all of the following reasons except:

• A)management's need for an objective appraisal of organizational or departmental performance
• B)increased internal and external emphasis on effective procedures to detect or prevent fraud
• C)compliance with Section 404 of the Sarbanes-Oxley Act of 2002
• D)management's need to delegate the responsibility of the financial statements

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Definitions:

Profit-Maximizing

A strategy or point where a business achieves the highest possible profit with its current resources and market conditions.

Short Run

A period in economics where at least one input (such as plant size) is fixed, limiting the ability of a firm to adjust to market changes.

Market Price

The current price at which a good or service can be bought or sold in a given market.

Total Revenue

The total income received by a firm from selling its goods or services before any costs or expenses are subtracted.