Which of the Following Statements Concerning the Auditor's Use of the Work

question 1

Multiple Choice

Which of the following statements concerning the auditor's use of the work of an expert is correct?

• A)If the auditor believes that the determinations made by the expert are unreasonable, only an adverse auditor's opinion may be issued.
• B)If the expert is related to the client, the auditor is not permitted to use the expert's findings as corroborative evidence.
• C)The expert should be identified in the auditor's report if the auditor has relied on the expert in issuing an unmodified auditor's opinion.
• D)The expert should have an understanding of the auditor's corroborative use of the expert's findings.

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Definitions:

Structural Differentiation

Structural differentiation is the process through which an organization becomes more complex by dividing and specializing its functions and roles.

Role Ambiguities

The uncertainty or lack of clarity about the expectations, responsibilities, or duties associated with a particular role.

Resource Scarcities

A situation where there is an insufficient availability of resources to meet the demands of a population.

Win-lose Competition

A competitive situation where one party's gain is directly proportional to another party's loss.