RTRP - IRS Registered Tax Return Preparer Test

Category - Specialized Forensic Knowledge

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Which of the following information does an external auditor rely on?

Financial statements
Grapevine communication
Discussions with senior management
Discussions with every member of staff
All of the above

Explanation

Answer: E - An external auditor relies on all the above-mentioned information. The approach varies based on the information sought. Financial statements are a must to consider because of the inherent role of the external auditor. In addition, discussions with senior management and members of the staff also provide pertinent information. Informal discussions with staff members include grapevine communications.

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