The independent auditors might consider the procedures performed by the internal auditors because:
A)They are employees whose work must be reviewed during substantive testing.
B)They are employees whose work might affect the independent auditors' work.
C)Their work impacts upon 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

The internal auditors are employees of the company being audited and their work might affect the work of independent auditors. The independent auditors should consider the nature, timing, and extent of the work performed by the internal audit team and determine whether they can rely on that work to reduce the amount of work they need to perform themselves. This is particularly important when testing internal controls.

The Independent Auditors Might Consider the Procedures Performed by the Internal