During the Course of the Audit Engagement, the External Auditor

question 30

Multiple Choice

During the course of the audit engagement, the external auditor suggests an adjustment to the financial statements. The suggestion is accepted by management without argument. This suggests that:

• A) the external auditor is primarily responsible for the fairness of the financial statements.
• B) the internal auditor has assumed responsibility for the changes made.
• C) the external auditor has prepared the financial statements.
• D) the client has assumed responsibility for the changes made.

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Definitions:

Team Performance

The level of effectiveness and productivity achieved by a group of individuals working together towards common goals.

Compromise Style

A conflict resolution approach where parties involved in a disagreement each give up something to reach a mutually acceptable solution.

Assertiveness

The quality of being self-assured and confident without being aggressive, expressing one's views and standing up for oneself respectfully.

Cooperative Responses

Actions or behaviors that involve working together towards a common goal or in mutual benefit.