Which of the Following Statements Regarding Using the Work of Another

question 3

Multiple Choice

Which of the following statements regarding using the work of another auditor is correct?

• A) The group engagement partner will spend more time reviewing the component auditor's work when the component is at risk of material misstatement.
• B) The group engagement partner will spend more time reviewing the component auditor's work if the component auditor has a good reputation.
• C) The group engagement partner will spend less time reviewing the component auditor's work when the component is at risk of material misstatement.
• D) The component auditor sets out the work to be conducted by the group engagement partner.

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Definitions:

Normal Distribution

A symmetrical, bell-shaped distribution of data where most of the observations cluster around the central peak and the probabilities of values taper off equally in both directions from the center.

Mean

The average of a set of numbers, calculated by dividing the sum of all the values by the number of values.

Standard Normal Variable

A random variable that has been normalized so that it has a mean of 0 and a standard deviation of 1, following the standard normal distribution.

Symmetrical Area

A region in a distribution curve where data are evenly distributed on both sides of a central point, indicating balance and uniformity.