Which of the Following Evaluation Criteria Would Be the Most

question 445

Multiple Choice

Which of the following evaluation criteria would be the most useful to help the chief audit executive determine whether an external service provider possesses the knowledge, skills, and other competencies needed to perform a review?

• A) The financial interest the service provider may have in the organization.
• B) The relationship the service provider may have had with the organization or the activities being reviewed.
• C) Compensation or other incentives that may be applicable to the service provider.
• D) The service provider's experience in the type of work being considered.

---

Definitions:

Insurance Market

A marketplace where individuals and entities can purchase insurance products to transfer risk and receive financial protection against loss.

Asymmetric Information

A situation in which one party in a transaction has more or better information than the other party, often leading to an imbalance in a transaction.

Major Theft

The act of stealing property of significant value or large quantities of items.

Probability

A measure of the likelihood of a specific outcome, event, or result occurring, expressed as a number between 0 and 1.