Which of the Following Statements Is False

question 13

Multiple Choice

Which of the following statements is false?

• A) Internal auditors lack the necessary independence to express opinions about the financial statements of the organizations for which they work.
• B) Internal auditors ensure that an organization's accounting system is properly designed to meet the organization's present and future needs.
• C) An external auditor who performs a financial statement audit is not required by professional standards to gain an understanding of the client's accounting information system before expressing an opinion.
• D) If an external auditor finds the controls over the accounting system to be adequate, he or she may be able to reduce the amount of testing of transactions and account balances necessary to support an opinion on the fairness of the financial statements.

Recognize the basic forms of departmentation and their applications in various organizational contexts.

Comprehend the role of conflict in matrix structures and strategies to manage it.

Describe the coordination mechanisms available in organizations and their appropriateness for different types of work.

Understand the implications of departmental structures on professional development and efficiency within organizations.

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Definitions:

General Warranty Deed

A legal document transferring property ownership that guarantees the seller holds clear title and assumes responsibility for any title defects.

Restrictive Covenants

Legal agreements tied to a property that restrict the actions property owners can take, often used in employment contracts and real estate.

Neighborhood Conformity

The phenomenon where properties within a certain area tend to show uniformity in terms of appearance, value, and use due to similar societal or zoning pressures.

Square Foot Homes

A measure used to indicate the area of a residential property, typically used in real estate to describe the size of homes.