Question : 21) Which of the following true of an internal auditor? A) : 1222535

21) Which of the following is true of an internal auditor?

A) The responsibilities of an internal auditor extend beyond the processing functions of a transactional accountant.

B) A qualified opinion from the internal auditor adds credibility to the organization and its financial statements.

C) The internal auditor issues reports that are used by the stakeholders and other users to understand the financial statements of an organization.

D) The budgets, cash flow statements, income statement, and balance sheet of an organization is prepared by the internal auditor.

22) The purpose of the ________ is to form and express an opinion as to whether the organization’s financial statements, taken as a whole, reflect its financial position on a given date and the results of its operations for a given period.

A) forensic accountant

B) external auditor

C) transactional accountant

D) internal auditor

23) A ________ records, classifies and summarizes the financial transactions a company.

A) transactional accountant

B) internal auditor

C) external auditor

D) management accountant

24) Which of the following exemplifies the role of an internal auditor?

A) Chloe classifies the transactions of Pole Star, Inc. and records it in the books of accounts.

B) Chloe reports on the sufficiency of the insurance policies taken out on the assets of Pole Star, Inc.

C) Chloe reports on the financial position of Pole Star, Inc. at the end of the accounting period.

D) Chloe assists the management of Pole Star, Inc. to determine the taxes and tax benefits..

25) Which of the following exemplifies the role of an external auditor?

A) Victor recorded the transactions entered in to by Trident, Inc. in the proper accounting period.

B) Victor prepared the annual budget of Trident, Inc., and he also helped the department heads prepare budgets for each department.

C) Victor evaluated the internal controls of Trident, Inc. and reported on the financial position as at the year end.

D) Victor conducted an investigation into the affairs of Trident, Inc. to allay suspicions of mismanagement of funds.

26) Which of the following is the objective of an external auditor?

A) form an opinion on the overall financial statements taken as a whole

B) capture and record all economic transactions of the organization

C) ensure compliance with policy and procedures; offer recommendations for improvement of internal controls

D) address a specific question/issue

27) Which of the following defines the term deductive reasoning?

A) It is defined as reasoning from the general to the specific.

B) It is defined as reasoning from a logically valid conclusion to the premises.

C) It is defined as generalizing results to arrive at a valid conclusion.

D) It is defined as reasoning from particular facts to general conclusions.

28) Which of the following is a process flowing from a set of specific observations, facts, or data to a working hypothesis and then a general conclusion?

A) intuitive reasoning

B) inductive reasoning

C) deductive reasoning

D) critical reasoning

29) All kids like Jelly Bean. Sam is a kid. Therefore, we can conclude that Sam likes Jelly Bean. Which type of reasoning does this indicate?

A) intuitive reasoning

B) inductive reasoning

C) deductive reasoning

D) critical reasoning

30) All clouds are white. Some clouds are round. Which of the following can be concluded using deductive reasoning?

A) Some clouds are white.

B) No conclusion can be obtained.

C) White clouds are round.

D) Round clouds are white.