In Assessing the Objectivity of Internal Auditors, the Independent CPA

question 962

Multiple Choice

In assessing the objectivity of internal auditors, the independent CPA who is auditing the entity's financial statements most likely would consider the:

• A) Internal auditing standards developed by The Institute of Internal Auditors.
• B) Tests of internal control activities that could detect errors and fraud.
• C) Materiality of the accounts recently inspected by the internal auditors.
• D) Results of the tests of transactions recently performed by the internal auditors.

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Definitions:

Charismatic Leadership

A leadership style characterized by an individual's ability to inspire and influence others through personal charm and persuasion.

Social Identification

The process by which individuals define themselves in relation to groups, adopting the values and norms of the group.

Transformational Behavior

Actions that inspire and motivate followers to exceed expectations by fostering significant changes.

Contingent Reward

A form of motivation in which the reward is given based on achieving a predefined outcome or performance level.