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.

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 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.

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 two actions do internal auditors perform to assist in maintaining the integrity of financial statements?Choose 2 answers They review financial records and internal controls. They search for and investigate fraud. They issue opinions regarding whether financial statements align with Generally Accepted Accounting Principles (GAAP). They perform the initial accounting for various transactions.

Which of the following statements regarding financial statement audits are correct? Multiple select question.The auditor may be an employee of the company being audited.Auditors must be CPAs.The audit fee may not be based on the outcome of the audit.Auditors can own stock in the companies they audit.