Which of the Following Factors Should an External Auditor Obtain

question 51

Multiple Choice

Which of the following factors should an external auditor obtain updated information about then assessing an internal auditor's competence?

• A)The reporting status of the internal auditor within the organization.
• B)The educational level and professional experiences of the internal auditor.
• C)Whether policies prohibit the internal auditor from auditing areas where relatives are employed.
• D)Whether the board of directors,audit committee,or owner-manager oversees employment decisions related to the internal auditor.

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Definitions:

Cash Outflow

Cash outflow refers to the movement of money out of a business, mainly through expenses, purchases, or investments, over a period.

Buying Property

The process of acquiring ownership of land or buildings, typically for residential, commercial, or investment purposes.

Operating Activities

These are the day-to-day actions that involve the production, sales, and delivery of a company's products or services, as reported in the cash flow statement.

Dividends Paid

The total amount of dividends that a company distributes to its shareholders during a specific period.