Auditors Gather Information Through Communication with Individuals Internal and External

question 50

Multiple Choice

Auditors gather information through communication with individuals internal and external to the prospective client.Which of the following would be internal to the client?

• A)Communication with client personnel
• B)Communication with third parties
• C)Communication with the client's industry peers
• D)Communication with the previous auditor

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Definitions:

Federal Government

The national government of a federated state, which holds the authority to govern at a level above individual states or provinces.

Socialist Systems

Political and economic theories advocating for the ownership and administration of the means of production and distribution by the community as a whole or by a centralized government to achieve equal distribution of wealth and the elimination of social classes.

Mixed Economy

A system where both private enterprise and government intervention coexist in the economic sphere, facilitating a balance between free market principles and social welfare.

Invisible Hand

A term coined by Adam Smith to describe the unintended social benefits resulting from individual actions in a free market.