Red and Green,CPAs Are the External Auditors for Blue Corporation,a

question 3

Multiple Choice

Red and Green,CPAs are the external auditors for Blue Corporation,a publicly held company.Blue Corporation has outsourced its internal audit function to Red and Green.Which of the following statements is true?

• A) Doing internal audit work does not impair the independence of Red and Green.
• B) The independence of Red and Green is impaired only if employees of Red and Green act in a management capacity or make management decisions.
• C) The independence of Red and Green is impaired only if a member of Red and Green's engagement team is hired to manage an accounting function in Blue Corporation.
• D) As a public accounting firm, Red and Green cannot be both the internal and external auditors for publicly held companies and maintain independence.

---

Definitions:

Interaction Patterns

Recurrent dynamics and behaviors observed within interpersonal interactions or between groups.

Group's Attraction

Group's attraction refers to the qualities or factors that draw members together and contribute to their willingness to be part of the group.

Intervention Plans

Strategically designed actions and measures aimed at addressing specific problems or improving situations.

Interpersonal Interventions

Actions taken to improve or influence personal relationships or interactions between individuals.