According to IIA Guidance, Which of the Following Is True

question 6

Multiple Choice

According to IIA guidance, which of the following is true regarding audit supervision? 1. Supervision should be performed throughout the planning, examination, evaluation, communication, and follow-up stages of the audit engagement. 2. Supervision should extend to training, time reporting, and expense control, as well as administrative matters. 3. Supervision should include review of engagement workpapers, with documented evidence of the review.

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

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Definitions:

Market Economy

An economic system in which supply and demand drive the production and distribution of goods and services, with minimal government intervention.

Specialization

Focus on a narrow area of expertise or production to increase efficiency and output.

Technological Advance

(1) An improvement in the quality of existing products, the invention of entirely new products, or the creation of new or better ways of producing or distributing products. (2) Any improvement in the methods by which resources are combined such that the same quantity of inputs can be made to yield a combination of outputs that is preferred to any combination of outputs that was previously possible.