Which of the Following Is NOT Something External Auditors Are

question 12

Multiple Choice

Which of the following is NOT something external auditors are expected to do in looking for fraud?

• A) Assessing the control environment of the organization
• B) Evaluating internal controls
• C) Considering audit risk and materiality
• D) Evaluating management's commitment to serve the public interest

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Definitions:

Ending Inventory

The price of items for sale at the closing of a fiscal period.

Lower Of Cost

An accounting principle stating that inventory or other assets should be recorded at the lower of either the original cost or the current market value.

Market

A place or system where buyers and sellers interact to trade goods, services, or securities.

Inventory Item

A product or goods held by a company for the purpose of sale or production in the normal course of business.