Which of the following areas can external auditors rely on internal auditors' work in auditing internal controls?
A)Evaluation of the auditing environment.
B)Testing of low risk internal control activities.
C)All testing of the operating effectiveness of internal control activities.
D)As providing the principle evidence for the external auditors' opinion.

Question

Quizplus · Accepted Answer

External auditors can rely on internal auditors' work in testing low risk internal control activities, but they cannot rely on internal auditors' work as the sole evidence for their opinion. The external auditor must still perform their own testing and evaluation of internal controls. The other options are either incorrect or too broad.

Which of the Following Areas Can External Auditors Rely on Internal