An independent auditor might consider the procedures performed by the internal audit function because:
A)they are employees whose work must be reviewed during substantive testing.
B)they are employees whose work might be relied upon.
C)their work impacts the cost/benefit tradeoff in evaluating inherent limitations.
D)their degree of independence may be inferred by the nature of their work.

Question

Quizplus · Accepted Answer

An independent auditor may consider the procedures performed by the internal audit function because they are employees whose work might be relied upon. Internal auditors may have specialized knowledge or access to information that can assist the external auditor in obtaining sufficient audit evidence. However, the external auditor needs to assess the internal auditor's competence and objectivity to determine the extent to which the work of the internal auditor can be relied upon.

An Independent Auditor Might Consider the Procedures Performed by the Internal