If the Audit Organization Has Done What Is Given Below

question 133

Multiple Choice

If the audit organization has done what is given below then in general, reviewers can conclude there is reasonable assurance that an internal quality control system is effective. Please mark the correct option:

• A) Not allowed applicable auditing standards.
• B) Not implemented adequate audit policies and procedures.
• C) Followed applicable auditing standards.
• D) Not followed applicable auditing standards

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Definitions:

Patents

Legal rights granted to inventors, allowing them exclusive use and exploitation of their inventions for a certain period.

Unrealized Intercompany Profits

Profits arising from transactions between entities within the same group that have not yet been realized by selling the goods or services to an external party.

Cumulative Dividends

Dividends on preferred shares that accumulate and must be paid out before any dividends can be distributed to common shareholders.

Consolidated Cost

The total cost that combines figures from various subsidiaries of a parent company into one aggregated total.