Why Should Internal Auditors Develop a Strong Relationship with the External

question 56

Multiple Choice

Why should internal auditors develop a strong relationship with the external auditors?

• A) External auditors offer an additional layer of approval to internal auditors' reports.
• B) External auditors can help improve the effectiveness of internal control sampling techniques.
• C) External auditors can offer an independent and knowledgeable viewpoint.
• D) External auditors can share information gained from work with similar clients.

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Definitions:

Current Liabilities

Obligations or debts that a company expects to pay or settle within one year or its operating cycle, whichever is longer.

Current Assets

Assets that a company expects to convert into cash, sell, or consume within one year or its operating cycle, whichever is longer.

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, used to evaluate the relative value of company shares.

Market Price

The current price at which an asset or service can be bought or sold.