In Making Judgments About the Effect of the Internal Auditors

question 69

Multiple Choice

In making judgments about the effect of the internal auditors' work on the external auditor's procedures in specific audit areas,which of the following is not among three issues related to the audit areas that should be considered by the external auditor?

• A)Materiality of the financial statement amounts.
• B)Risk of material misstatement of the assertions related to these financial statement amounts.
• C)Review of quality of audit policies,programs,and procedures.
• D)Degree of subjectivity involved in the evaluation of the audit evidence gathered in support of the assertions.

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Definitions:

Uncertain Timing

Refers to the ambiguity or unpredictability associated with the timing of an event or outcome, often affecting planning and decision-making processes.

Uncertain Amount

An Uncertain Amount refers to a value or quantity that is not fixed or precisely determined, often due to volatility or incomplete information.

Harmonized Sales Tax (HST)

A combined tax in some Canadian provinces that merges the federal goods and services tax (GST) with the provincial sales tax (PST) into a single value-added tax.

Current Liability

Obligations or debts that a company needs to settle within one year or one business cycle, whichever is longer.