A company's comparisons and compliance monitoring:
A) should include cash budgets, which are the budgets of future period's net income.
B) can contain "rolling" budgets which are constantly updated .
C) should include internal auditors who are completely independent of the business.
D) should contain adequate hiring practices.

Question

Quizplus · Accepted Answer

"Rolling" budgets, which are constantly updated, allow for more accurate comparisons and monitoring of compliance as they reflect any changes or fluctuations in the business. Cash budgets (A) are important for financial planning, but not necessarily for direct comparisons and compliance monitoring. Internal auditors (C) are important for ensuring compliance, but they do not necessarily need to be completely independent of the business. Adequate hiring practices (D) are important for the overall success of a company, but are not directly related to comparisons and compliance monitoring.

A Company's Comparisons and Compliance Monitoring