External Auditors Are Referred to as "External" Because

question 57

Multiple Choice

External auditors are referred to as "external" because

• A) They report to users outside of the audited entity.
• B) They are paid by parties outside of the audited entity.
• C) They are not employees of the entity being audited.
• D) Their offices are not at the entity's place of business.

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Definitions:

Outside Evidence

Information or data that comes from external sources, used to support arguments or conclusions.

Feasibility Report

A document that assesses the practicality of a proposed plan or project, evaluating its potential for success.

Important Decision

A significant choice or judgment that can have a considerable impact on an individual's life or an organization's direction.

Failure-Analysis Report

A document that investigates and identifies the reasons behind a product or process failing to meet its objectives.