When a Firm Undertakes Both Internal and External Auditing Services

question 66

Multiple Choice

When a firm undertakes both internal and external auditing services for the same entity, which of the following must be applied for the external auditor to demonstrate independence?

• A) Any recommendations made by auditors are for implementation by management rather than the auditor.
• B) The external auditor should gather sufficient appropriate audit and rely no more than usual on internal audit work.
• C) The external auditor should not assume the role of management when undertaking internal audit services.
• D) all of the above

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Definitions:

Group's Environment

The physical and social setting in which a group operates, including all external factors that influence the group's dynamics.

Agency Support

Refers to assistance provided by organizations to individuals in need, aimed at improving their well-being through various services and resources.

Interagency Networks

Collaborative frameworks connecting different organizations and agencies to achieve common objectives.

Intrapersonal Interventions

Strategies or actions taken to affect or improve an individual's internal processes, such as thoughts, feelings, and behaviors.