Which of the Following Is Not a Similarity Between External

question 69

Multiple Choice

Which of the following is not a similarity between external and internal auditors?

• A) Both must be independent of the company.
• B) Both must be competent.
• C) Both follow a similar methodology in performing their audits.
• D) Both consider risk and materiality deciding the extent of their tests and evaluating results.

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Definitions:

Average Run Length

The expected number of items inspected before a change is detected, commonly used in quality control.

False Alarm

An incorrect signal or detection indicating the presence of a condition or attribute that is not actually present.

Control Limits

The boundaries defined in control charts within which a process statistic is considered to be in a state of statistical control.

Standard Errors

A measure of the statistical accuracy of an estimate, calculated from the standard deviation of the sampling distribution.