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:

Dehabituation

The revival of a response that had been previously habituated, often as a result of presenting a new, novel stimulus.

Novel Situation

A new or unfamiliar situation that requires adaptive behaviors or cognitive processes to navigate.

Stimulus Intensity

The magnitude or strength of a stimulus, which can affect the likelihood and manner of its perception and response.

Sensitization

The increased responsiveness or sensitivity to a stimulus or a range of stimuli following exposure.