When Considering the Competence of Internal Auditors,external Auditors Should Obtain

question 69

Multiple Choice

When considering the competence of internal auditors,external auditors should obtain evidence about the

• A) Educational and experience qualifications of the internal auditors.
• B) Organizational status of the internal auditors.
• C) Lines of communication within the entity of the internal auditors.
• D) The size of the internal audit department.

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Definitions:

Goodwill

An intangible asset representing the value of a company's brand, customer relationships, employee relations, and other non-physical assets.

Intangible Asset

An asset that lacks physical substance but is still valuable because of its potential economic benefits, such as patents or trademarks.

Amortized

The process of spreading out a loan or intangible asset cost over a fixed period in regular installments, covering interest and principal payments.

Salvage Value

The anticipated market value of an asset at the conclusion of its operational lifespan.