In Advance of a Preliminary Survey, a Chief Audit Executive

question 180

Multiple Choice

In advance of a preliminary survey, a chief audit executive sends a memorandum and questionnaire to the supervisors of the department to be audited. What is the most likely result of that procedure?

• A) It creates apprehension about the audit engagement.
• B) It involves the engagement client's supervisory personnel in the audit.
• C) It is an uneconomical approach to obtaining information.
• D) It is only useful for audits of distant locations.

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Definitions:

Rate of Interest

The percentage of the principal amount charged by lenders for the use of their money or paid by banks on deposits over a specified time period.

Doubled

To increase something by 100%, making it twice as large or twice as much in quantity.

Years

Units of time that constitute 365 days (or 366 days in a leap year), commonly used as a measure for time periods in financial calculations.

Annual Growth Rate

The percentage increase in the value of an investment or portfolio over the period of a year.