Management Has Requested That an Internal Auditor Serve as Member

question 260

Multiple Choice

Management has requested that an internal auditor serve as member of a task force that will review current receivables practices and make recommendations to improve processes. Which of the following is the most appropriate response by the internal auditor?

• A) Accept the assignment provided that such consulting services are defined in the charter.
• B) Decline the assignment because participation on task forces will impair the auditor's objectivity in future audit engagements.
• C) Accept the assignment if the auditor believes that it will not impair objectivity in future audit engagements.
• D) Do not accept the assignment because the assignment is not part of an approved audit plan.

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Definitions:

Responsiveness

The ability of a company or system to rapidly respond to changes in demand or market conditions.

Demand Satisfaction

The degree to which the needs and desires of customers for a product or service are met by a company.

Over-Capacity

The condition of having more production or service capacity than currently needed, which can lead to inefficiencies, increased costs, and downward pressure on prices.

Flexible Capacity

The ability of a production system to adjust and scale its output up or down to match demand variations.