In Assessing the Objectivity of Internal Auditors,an Independent Auditor Should

question 107

Multiple Choice

In assessing the objectivity of internal auditors,an independent auditor should

• A)evaluate the quality control program in effect for the internal auditors.
• B)examine documentary evidence of the work performed by the internal auditors.
• C)test a sample of the transactions and balances that the internal auditors examined.
• D)determine the organizational level to which the internal auditors report.

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Definitions:

Recessionary Gap

A situation where an economy's real GDP is lower than its potential GDP, indicating underutilized resources and economic slack.

Price Level

The average of current prices across the entire spectrum of goods and services produced in the economy, often used in economic analysis and policy-making.

Expansionary Gap

A situation where the actual output of an economy exceeds its potential output, often leading to inflationary pressures.

Recessionary Gap

The situation where an economy's real GDP is less than its potential GDP, leading to underutilization of resources and unemployment.