The Independent Auditor Should Acquire an Understanding of the Internal

question 23

Multiple Choice

The independent auditor should acquire an understanding of the internal audit function as it relates to the assessment of control risk because

• A) Internal audit programs, audit documents, and reports can eliminate the need for the independent auditor's staff.
• B) The procedures performed by the internal audit staff may eliminate the independent auditor's need for an extensive study and evaluation of internal control.
• C) The work performed by internal audit personnel may be a factor in determining the nature, timing, and extent of the independent auditor's procedures.
• D) The understanding of the internal audit function is an important substantive procedure to be performed by the independent auditor.

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Definitions:

Constructive Stress

Stress that is perceived as positive or beneficial, motivating individuals to perform better and achieve their goals.

Moderate

Describing a level of intensity, quantity, or quality that is considered average or reasonable, neither extreme nor minimal.

Stress Intensity

The level of pressure or tension experienced by an individual, often in relation to specific stressors.

Role Ambiguities

Situations where the expectations or responsibilities of a position are unclear, leading to confusion or conflicts in the workplace.