An Independent Auditor Might Consider the Procedures Performed by the Internal

question 42

Multiple Choice

An independent auditor might consider the procedures performed by the internal auditors because

• A) They are employees whose work must be reviewed during substantive testing.
• B) They are employees whose work might be relied upon.
• C) Their work impacts the cost/benefit tradeoff in evaluating inherent limitations.
• D) Their degree of independence may be inferred by the nature of their work.

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Definitions:

Capital

Capital refers to financial assets or physical resources that are used in the production of goods and services, including machinery, buildings, or money invested.

Workforce

The group of people who are engaged in or available for work, either in a country or a firm.

Economic Efficiency

A condition in which all resources are allocated in a way that maximizes the total benefit to society or minimizes waste.

Voice Mechanism

A means by which individuals or groups can express opinions, feedback, or concerns, often in the context of organizational decision-making or governance.