Testing the Work of the Internal Auditors Is Least Likely

question 12

Multiple Choice

Testing the work of the internal auditors is least likely when the external auditor has decided that:

• A) the internal auditors will be used to directly assist in the conduct of the audit.
• B) the internal auditors have operating responsibilities as well as their auditing role
• C) the internal auditors are full-time employees of the client.
• D) the reports of the internal auditors are consistent with the results of the work performed.

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Definitions:

Quick Ratio

A measure of a company's ability to meet its short-term obligations with its most liquid assets.

Total Asset Turnover

A financial ratio that measures how efficiently a company uses its assets to generate sales by dividing net sales by total assets.

Total Debt Ratio

A financial ratio that compares a company's total liabilities to its total assets, indicating the proportion of a company's assets that are financed through debt.