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:

Fire Safety

Measures and protocols aimed at reducing the risk of fire, including prevention strategies, emergency planning, and educating individuals on how to respond during a fire incident.

Smoking In Bed

A dangerous practice that involves smoking while lying down in bed, posing significant risks of fire and injury.

Space Heater

A portable device used to heat a small area, often electric or fueled by combustible materials.

RACE Method

An acronym standing for "Rescue, Alarm, Confine, Extinguish," used as a protocol in fire safety training.