22. For a U.S. multinational corporation, consolidating the ng the financial statements of foreign subsidiaries requires two steps. First, squires two steps. First, the foreign subsidiary's statements must be tested according to U.S. GAAP. The next step is to A convert the account balances into U.S. dollars. B) determine the exchange rate gain or loss. C) calculate the translation adjustment D) restate the income using international accounting Standards. 3. What is the primary role of internal auditing in a multinational corporation? A) To assist the external auditors in completing the financial statement audit in a timely fashion B) To make sure that employees comply with local customs and traditions C) To ensure that corporate policies and procedures are being followed and to assess operating efficiency D) To prepare the consolidated financial statement of the corporation in compliance with international accounting standards 24. Which of the following statements is true about international transfer pricing? A) It is a violation of the Foreign Corrupt Practices Act. B) It is accomplished using guidelines set up by the FASB. C) It is used to minimize the amount of worldwide taxes. D) Most countries do not regulate it. OECD is an important supranational entity. What do the letters OECD stand for? A) Organization of Electrical Companies Directorate B) Oil Exporting Countries and Developers C) Organization for Economic Cooperation and Development D) Oil Exporting Corporations and Divisions What is the intent of IFRS 1? A) To establish the guidelines for financial statement presentation B) Provide the working definitions of accounting elements C) It gives guidance to first-time adopters of IFRS issued by the IASB. D) To provide the framework for setting international accounting standards