The work of internal auditors may affect the independent auditor's
A)procedures performed in obtaining an understanding of the internal control structure and in assessing the risk of material misstatement only.
B)procedures performed in obtaining an understanding of the internal control structure and substantive tests performed in gathering direct evidence only.
C)procedures performed in assessing the risk of material misstatement and substantive tests performed in gathering direct evidence only.
D)procedures performed in obtaining an understanding of the internal control structure and in assessing the risk of material misstatement and substantive tests performed in gathering direct evidence.

Question

Quizplus · Accepted Answer

The work of internal auditors may affect the independent auditor's procedures performed in obtaining an understanding of the internal control structure, assessing the risk of material misstatement, and substantive tests performed in gathering direct evidence. This is because the internal auditors' work may provide evidence regarding the effectiveness of the internal controls and the validity of the financial transactions, which could impact the scope and nature of the independent auditor's procedures. Therefore, the independent auditor should consider the work of the internal auditors in planning and performing their audit procedures.

The Work of Internal Auditors May Affect the Independent Auditor's