In a Financial Statement Audit, the Auditor Maintains Professional Relationships

question 22

Multiple Choice

In a financial statement audit, the auditor maintains professional relationships with:

• A)the board of directors and ASIC.
• B)the audit committee and the internal auditors.
• C)management and the professional accounting bodies.
• D)shareholders and creditors.

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Definitions:

Efficient

The quality of achieving maximum productivity with minimum wasted effort or expense.

Capable of Survival

Having the means, skills, or conditions necessary to continue existence or operations.

Departmentalization

The organizational practice of dividing a business into distinct departments, each being responsible for certain tasks or processes.

Jobs Grouping

The practice of organizing positions into categories or clusters based on similar duties, responsibilities, or characteristics.