If the internal audit function is competent and objective, the auditor may generally rely on the work of an internal audit function in certain areas to reduce the amount of external audit work in these areas.

Question

Quizplus · Accepted Answer

According to auditing standards, if the internal audit function is competent and objective, the external auditor may rely on their work in certain areas to reduce the amount of external audit work needed in these areas. This is known as "relying on the work of others" and can be a useful tool in efficiently conducting an audit. However, the external auditor is still ultimately responsible for the overall audit opinion and must exercise professional judgment in determining the extent to which they can rely on the work of others.

If the Internal Audit Function Is Competent and Objective, the Auditor