Regarding the Internal Audit Function,which of the Following Statements Is

question 15

Multiple Choice

Regarding the internal audit function,which of the following statements is true?

• A)Since many internal auditors have accounting backgrounds,the internal audit function should ideally be included within a company's accounting subsystem
• B)It is not proper for internal auditors to perform a fraud investigation within any part of their company's system
• C)Because of the independence of external auditors,they should never accept previous work of evaluating controls performed by a company's internal auditors
• D)Within a company's system,it is preferable to establish the internal audit function as a separate subsystem

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Definitions:

Consideration

A value promised in exchange for a certain act in a contractual agreement.

Quantum Meruit

A legal principle where a party is compensated with a reasonable sum for goods or services provided, even if no contract exists.

Quantum Valebant

A principle in contract law that allows for the recovery of as much as deserved, or the reasonable value of goods or services rendered when no contract price was established.

Commission

A fee paid to an agent or employee for conducting a transaction or performing a service.