Which of the Following Is a Valid Statement About the Use

question 373

Multiple Choice

Which of the following is a valid statement about the use of visual observations during an audit engagement? 1. Visual observations can be used to detect ineffective controls, idle resources, and safety hazards. 2. Visual observations can be used during both preliminary survey and fieldwork stages of the audit engagement. 3. Visual observations can provide unsubstantiated facts to management if the internal auditor believes the information is useful. 4. Visual observations can assist an auditor in determining if a material observation should be communicated through informal means to the organization's senior management.

• A) 1 and 2 only
• B) 1 and 4 only
• C) 2 and 3 only
• D) 3 and 4 only

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Definitions:

Demographic Factors

the characteristics of a population segment, such as age, gender, education, and income, which can influence trends in markets and societies.

Labour Market

The supply and demand dynamics for employment, where employers seek to hire workers and workers seek jobs.

Stakeholders

Stakeholders are individuals or groups that have an interest, right, or stake in an organization, project, or issue and can affect or be affected by the organization's actions.

Retirement

The period in one's life where they choose to permanently leave the workforce behind, often accompanied by a pension or retirement savings plan.