Which of the Following Statements Is True

question 109

Multiple Choice

Which of the following statements is true?

• A)External auditors must consider the internal audit function as part of obtaining an understanding of a company's internal control structure.
• B)External auditors must review all work performed by internal auditors.
• C)External auditors must investigate the competence and objectivity of internal auditors.
• D)External auditors must share responsibility for the work of internal auditors if it is used for evidence for the financial statement audit.

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Definitions:

Money Supply

The total amount of monetary assets available in an economy at a specific time, including cash, coins, and balances held in bank accounts.

Real Growth

Real growth refers to the expansion in the value of an economy's goods and services after adjusting for inflation, showing the true increase in economic output over time.

Monetarists

Economists of the view that changes in the money supply are major determinants of short-term national production and long-term price stability.

Private Economy

A section of the economy that is owned and operated by private individuals and companies rather than the government.