Which of the Following Best Describes How External Auditors' Interactions

question 14

Multiple Choice

Which of the following best describes how external auditors' interactions with their clients is likely to change due to the use of data analytics in the audit process?

• A)External auditors will spend less time on audits and will not need to spend time with clients outside the audit.
• B)External auditors will spend more time on detailed audit tasks,resulting in longer audit engagements.
• C)External auditors will only interact with their clients virtually.
• D)External auditors will stay engaged with clients beyond the audit.

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Definitions:

Missed Payment

Failure to make a required payment by its due date.

Original Principal

The initial amount of money borrowed or invested, before any interest or profit is added.

Compounded Annually

Interest calculated on the initial principal and the accumulated interest from the past year added together once per year.

Term Deposit

A type of bank deposit that has a fixed term and typically offers a higher interest rate than a regular savings account.