Indicate whether the following statement is True or False.One of the differences between the internal and external audit function is that the external auditor focusses on the financial control environment, whereas the internal auditor focusses on the overall internal control environment of an organisation

Which of the following statements regarding external auditors is true?Select answer from the options belowThey are employees hired to evaluate the effectiveness of a company's system of internal control.They are employees hired to conduct internal reviews.They are independent professional accountants contracted by companies to report on the fair presentation of the financial statements.They periodically review department activities to determine if controls are being followed.

According to PSA 400, which of the following is correct regarding internal control system?Select one:a.In the audit of financial statements, the auditor is only concerned with those policies and procedures within the accounting and internal control systems that are relevant to the financial statements.b.The internal control system is confined to those matters which relate directly to the functions of the accounting system.c.A strong environment, by itself, ensure the effectiveness of the internal control system.d.Internal control system refers to all the policies and procedures adopted by the auditor to assist in achieving management's objective.

Indicate whether the following statement is True or FalseThe auditor evaluates and tests the internal controls of a business and concludes that the internal controls are very effective. Therefore, the auditor is not required to perform any substantive procedures

Which of the following indicates a strong internal control environment?Select one:a.adverse business conditions exist in the industryb.the internal audit group reports to the audit committee of the board of directorsc.there is no segregation of duties between organization functionsd.there are questions about the integrity of management

Which of the following statements is true about internal controls over financial reporting?Select answer from the options belowSpecific controls are unnecessary if broad controls have been implemented.Management should not assume that all controls are effective at all times.External audit fees will not change regardless of the effectiveness of internal controls.The best-designed controls are not subject to failure or circumvention.