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.

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Definitions:

Loudness

The perception of the intensity of sound, often measured in decibels, as experienced by the human ear.

Maximum Firing Rate

The highest frequency at which a neuron can repetitively fire or send signals without failing.

Neural Impulses

The electrical signals that travel along neurons, enabling communication within the brain and between the brain and other parts of the body.

Theories of Perception

Various theories that attempt to explain how sensory information is organized, interpreted, and consciously experienced.