The Fundamental Difference Between Internal and External Auditing Is That

question 49

Multiple Choice

The fundamental difference between internal and external auditing is that

• A)internal auditors represent the interests of the organization and external auditors represent outsiders
• B)internal auditors perform IT audits and external auditors perform financial statement audits
• C)internal auditors focus on financial statement audits and external auditors focus on operational audits and financial statement audits
• D)external auditors assist internal auditors but internal auditors cannot assist external auditors

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Definitions:

Creative Deviance

The act of producing novel and useful ideas or solutions that diverge from the norms or expectations of a group or organization.

Technical Understanding

The comprehension and proficiency in the use of technology and technical processes.

Creative People

Individuals who have the ability to produce original and unusual ideas, or to make something new or imaginative.

Mechanistic Structure

An organizational configuration that emphasizes hierarchy, rigid departmentalization, a clear chain of command, and strict control, commonly found in highly formalized and centralized organizations.