External Auditor Mary Smith May Not Rely on the Work

question 60

Multiple Choice

External auditor Mary Smith may not rely on the work of internal auditor Ray Jones unless

• A)Jones is certified (CPA,CA;CPA,CGA;or CPA,CMA).
• B)Jones is independent of the client.
• C)Jones is supervised by Smith.
• D)Smith obtains evidence that supports the competence,integrity,and objectivity of Jones.

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Definitions:

Feedback Loops

Systems within biological organisms used to maintain homeostasis, where the output of a process influences the operation of the process itself, either enhancing it (positive feedback) or suppressing it (negative feedback).

Subculture

A segment of the wider society that holds distinct opinions or practices diverging from the majority's cultural standards.

Rationalization

The process of replacing traditional and emotional thought patterns with more goal-oriented, efficient, and logical ones, often associated with the development of bureaucracies and industrialization.

Counterculture

A social group whose values, beliefs, and lifestyle are in opposition to those of the main culture prevailing in a society.