Which of the following is one of the three types of criteria used to evaluate the objectives for an assurance engagement?

In the context of evaluating the objectives for an assurance engagement, understanding the kinds of criteria used is essential for determining the engagement's effectiveness and relevance. The three types of criteria typically recognized are external, internal, and regulatory criteria.

The external criteria are based on established standards and benchmarks that come from outside the organization, such as industry standards or regulatory requirements. These criteria help assess whether the organization is meeting external expectations and can include frameworks set by professional bodies or legal mandates.

Being external in nature means that these criteria provide an objective reference point that facilitates comparisons against the performance or compliance of other entities within the same sector. They are crucial for establishing the credibility and reliability of the assurance engagement findings, particularly when stakeholders are looking to understand how well an organization is performing in the context of its industry or legal obligations.

In contrast, internal criteria are derived from within the organization itself, such as policies, procedures, and specific internal goals or benchmarks. Qualitative and quantitative distinctions refer to the nature of the data or measurements being evaluated rather than the sources of the criteria themselves.