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) Providing the principal 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. However, external auditors cannot rely on internal auditors' work for all testing of internal control effectiveness or as principal evidence for the opinion. Additionally, the evaluation of the auditing environment is typically the responsibility of external auditors, not internal auditors.

Which of the Following Areas Can External Auditors Rely on Internal