In Assessing the Competence of a Client's Internal Auditor,an Independent

question 65

Multiple Choice

In assessing the competence of a client's internal auditor,an independent auditor most likely would consider the

• A)Internal auditor's compliance with professional internal auditing standards.
• B)Client's policies that limit the internal auditor's access to management salary data.
• C)Evidence supporting a further reduction in the assessed level of control risk.
• D)Results of ratio analysis that may identify unusual transactions and events.

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Definitions:

Journalizing

The process of recording a transaction in a journal.

Adjustments

Corrections made to financial records and accounts to accurately reflect income and expenses for a period.

Ledger

A comprehensive record of a company's financial transactions, organized by account, used to compile financial statements.

Accounting Period

A specific period of time covered by accounting records and financial statements, typically a year or a quarter.