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This statement is FALSE.
Scope of work of External Auditors are defined by the Board of Directors and not by the Management of an entity. Management is responsible for the prepartion of financial statement which are subject to audit by the External Auditors. If they define the scope of external auditors there will be a conflict of interest.
Actually, management assign the work to external auditor's instead of determined their work. The services of external auditor's are hired for transparency purpose, in such case, if management herself determine their work than the expected OR expectation of transparency is day dream.
