In Making Judgments About the Effect of the Internal Auditors

question 93

Multiple Choice

In making judgments about the effect of the internal auditors' work on the external auditor's procedures in specific audit areas, which of the following is not one of the issues related to the specific audit areas that is considered by the external auditor?

• A) Materiality of the financial statement amounts.
• B) Risk of material misstatement of the assertions related to these financial statement amounts.
• C) Degree of subjectivity involved in the evaluation of the audit evidence gathered in support of the assertions.
• D) All of the above are considered by the auditor.

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Definitions:

Qualitative

Pertaining to descriptions or distinctions based on qualities rather than on quantity or numerical measurements.

Marketing Strategy

An organization's strategy that combines all of its marketing goals into one comprehensive plan, leveraging its resources to provide a competitive edge.

Diversified

The quality of having a wide variety or range of different things or activities.

SWOT Analysis

A strategic planning tool that evaluates the Strengths, Weaknesses, Opportunities, and Threats involved in a project or business venture.