Which of the Following Is Not a Reason That an External

question 24

Multiple Choice

Which of the following is not a reason that an external auditor would have an interest in an organization's internal control?

• A) Internal control provides a measure of protection against erroneous or fraudulent financial reporting.
• B) The external auditor is required to evaluate internal control in planning an external audit, according to generally accepted auditing standards.
• C) Strong internal control can eliminate the test of controls required to be performed by the external auditor.
• D) The Sarbanes-Oxley Act of 2002 requires the external auditor attest to and report on management's assessment of internal control.

Understand the views and beliefs of key figures such as Jefferson, Madison, and Crèvecoeur regarding American society and governance.

Recognize the fundamental principles and compromises in the U.S. Constitution.

Compare and contrast the Articles of Confederation with the U.S. Constitution.

Identify the different perspectives on liberty and government's role in protecting it.

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Definitions:

Privity Of Contract

A principle that contract terms apply only to the actual parties to the contract

Privity Of Contract

A doctrine in contract law that states only the parties involved in the contract have the right to sue or be sued on its terms.

Lease

A contractual arrangement calling for the lessee (user) to pay the lessor (owner) for use of an asset for a specified period of time.

Agency

In legal terms, an agency refers to a relationship in which one party, known as the agent, is authorized to act on behalf of another party, known as the principal, in business transactions with third parties.