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:

Better Than Anticipated

Results or outcomes that surpass the expected or forecasted standards.

Desired Situation

The optimal state or condition that a person, group, or organization aims to achieve in the future.

Actual Situation

The real and current state of affairs or conditions, as opposed to theoretical considerations or expectations.

Financial Bottom Line

A reference to the net income, profit, or loss reported at the bottom of a company's income statement.