Why Might the Decisions About Materiality and Risks Be Different

question 21

Multiple Choice

Why might the decisions about materiality and risks be different for the internal auditor than for the external auditor when conducting an audit of a system?

• A)The auditors are applying different skills during the conduct of the audit.
• B)External auditors have different expectations with respect to quality control.
• C)Internal auditors focus only on the potential for dollar errors internally.
• D)External users may have different needs than management.

---

Definitions:

Peter Drucker

An Austrian-born American management consultant, educator, and author, whose writings contributed to the philosophical and practical foundations of the modern business corporation.

Telework Centre

A facility that offers infrastructure and services to enable people to work remotely, often located away from traditional office environments.

Thalamus

A major part of the brain serving as a hub for transmitting signals from sensory receptors to relevant areas of the brain where they can be processed.

Schizophrenia

A psychiatric disorder characterized by disruptions in thought processes, perceptions, emotional responsiveness, and social interactions.