In Making Judgments About the Effect of the Internal Auditors

question 93

Multiple Choice

In making judgments about the effect of the internal auditors' work on the external auditor's procedures in specific audit areas, which of the following is not one of the issues related to the specific audit areas that is considered by the external auditor?

• A) Materiality of the financial statement amounts.
• B) Risk of material misstatement of the assertions related to these financial statement amounts.
• C) Degree of subjectivity involved in the evaluation of the audit evidence gathered in support of the assertions.
• D) All of the above are considered by the auditor.

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Definitions:

PAIBOC

An acronym for Purpose, Audience, Information, Benefits, Objections, and Context, a framework used to guide effective business communication.

Purpose Statements

Declarations that outline the objectives or goals of an entity, often guiding actions and decision-making processes.

Mechanics

Refers to the technical aspects of writing, including grammar, punctuation, and spelling, that ensure clarity and correctness.

Feedback

Information given to a person or group about their actions or performance, aimed at improvement.