In a Financial Statement Audit,what Is the External Auditor's Primary

question 37

Multiple Choice

In a financial statement audit,what is the external auditor's primary concern?

• A)Detecting all errors.
• B)Determining the effectiveness of operations.
• C)Determining whether the internal controls are effective.
• D)Determining whether the internal controls promote efficiency.

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Definitions:

Spare Parts

Components kept on hand for the purpose of repairing or maintaining machines or vehicles.

Third Parties

Entities or individuals that are not directly involved in a transaction or agreement but may be affected by or have an interest in its outcome.

Arbitraging

The practice of buying a good in one market at a lower price and selling it in another market at a higher price to profit from the price difference.

Price Discriminate

The practice of selling the same product or service at different prices to different customers, based on what the seller believes each customer is willing to pay.