Which of the Following Is a Difference Between an External

question 32

Multiple Choice

Which of the following is a difference between an external auditor and a forensic accountant?

• A) An external auditor captures and records all economic transactions of the organization, whereas a forensic accountant ensures compliance with policy and procedures.
• B) An external auditor manages the organization's accounting and internal control system, whereas a forensic accountant validates effectiveness of controls in various processes or areas of the organization.
• C) An external auditor adds credibility to reported financial information, whereas a forensic accountant provides assurance that management is adequately identifying and mitigating risks.
• D) An external auditor forms an opinion on the overall financial statements taken as a whole, whereas a forensic accountant addresses a specific question/issue.

---

Definitions:

Bibliography

A list of the books referred to in a scholarly work, typically printed as an appendix.

Outline

A structured list or summary of main points, often used for planning or organizing information.

Legal Terminology

The specialized language used by legal professionals that includes terms of art, legal concepts, and jargon unique to the field of law.

Black's Law Dictionary

A comprehensive law dictionary that provides definitions of legal terms and phrases used in American and, often, international law.