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:

Incidental Beneficiary

A third party who might benefit from a contract between two other parties but does not have legal rights to enforce the contract terms.

Assignment

The transfer of rights, duties, or property from one party to another, often used in the context of contracts or real estate.

Third-Party Beneficiary

An individual or entity that is not directly involved in a contract but stands to benefit from it as specified by the contracting parties.

Contract

A legally binding agreement between two or more parties that outlines obligations and rights with respect to each other.