Assume That the External Auditor Decides That Because of Work

question 3

Multiple Choice

Assume that the external auditor decides that because of work performed by internal auditors, the audit risk has been reduced to an acceptable level. As a result of this assessment, the auditor can do which of the following?

• A) The auditor must test the assertions directly and document a separate conclusion.
• B) The auditor can decide that direct testing is not necessary.
• C) The auditor must delegate the responsibility of expressing an opinion to the internal auditors.
• D) The auditor can assume that inherent risk is zero.

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Definitions:

Human Capital

The aggregate of talents, insights, and invisible resources owned by people that have the potential to generate economic profit for the workers, their employers, or the community they live in.

Automation

The use of technology and machinery to perform tasks without human intervention, often improving efficiency.

Human Capital

The collective skills, knowledge, and other intangible assets of individuals that can be used to create economic value for themselves, their employers, or their community.

Retaining Workers

The practices and strategies employed by organizations to keep their employees engaged, satisfied, and committed to remain with the company.