The Independent Auditor Should Acquire an Understanding of the Internal

question 22

Multiple Choice

The independent auditor should acquire an understanding of the internal audit function as it relates to the independent auditor's study and evaluation of internal control because the:

• A) audit programs, working papers, and reports of internal auditors can often be used as a substitute for the work of the independent auditor's staff.
• B) procedures performed by the internal audit staff may eliminate the independent auditor's need for an extensive study and evaluation of internal control.
• C) work performed by internal auditors may be a factor in determining the nature, timing, and extent of the independent auditor's procedures.
• D) understanding of the internal audit function is an important substantive test to be performed by the independent auditor.

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Definitions:

Intellectual Functioning

Refers to the general mental capacity, including reasoning, problem-solving, planning, abstract thinking, judgment, academic learning, and learning from experience.

Down Syndrome

A genetic disorder caused by the presence of an extra chromosome 21, leading to developmental and intellectual delays.

Intellectual Disability

Intellectual disability involves limitations in intellectual functioning and adaptive behavior, impacting everyday social and practical skills.

Socioeconomic Status

An individual's or family's economic and social position in relation to others, based on income, education, and occupation.