Which of the Following Situations Justifies the Release of an Interim

question 350

Multiple Choice

Which of the following situations justifies the release of an interim report to management and the board? • The internal auditor is convinced that the audit observations require immediate attention. • The internal auditor would like to communicate a change in engagement scope for the activity under review. • The internal auditor notes that the engagement may extend over a longer time period. • The audit supervisor believes that issuing interim reports eases supervisory review and controls over working papers.

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

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Definitions:

Letter Of Acceptance

A formal document or communication acknowledging and agreeing to the terms of a proposal or offer.

Offer

A proposal by one party expressing willingness to enter into a contract, provided certain terms are met by the other party.

Revoked

The withdrawal, cancellation, or annulment of a right, privilege, license, or decision, often by a competent authority.

Fixed Terms

Fixed terms refer to conditions or clauses in a contract or agreement that are set and cannot be changed without the consent of all parties involved.