If a Company Has an Effective Internal Audit Department

question 35

Multiple Choice

If a company has an effective internal audit department,

• A) the internal auditors can express an opinion on the fairness of the financial statements.
• B) their work cannot be used by the external auditors per PCAOB Standard 5.
• C) it can reduce external audit costs by providing direct assistance to the external auditors.
• D) the internal auditors must be CPAs in order for the external auditors to rely on their work.

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Definitions:

Succession Planning

The strategy for identifying and developing new leaders who can replace old leaders when they leave, retire, or pass away.

Career Planning

The process of setting career objectives and determining the steps and actions to achieve them.

Number

A mathematical object used to count, measure, and label.

Individuals

Persons or human beings regarded singly or independently, each with their own attributes and interests.