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:

Healthcare Facilities

Institutions providing patient treatment with specialized medical and nursing staff and medical equipment.

Central America-Dominican Republic Free Trade Agreement (CAFTA-DR)

A free trade agreement aimed at creating economic growth and facilitating trade between the United States, Central America, and the Dominican Republic.

U.S. Sugar Producers

Companies or entities involved in the cultivation, processing, and selling of sugar within the United States.

Relaxed Trade Rules

Eased regulatory provisions governing international trade, intended to simplify the process of buying and selling goods across borders.