An independent auditor 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 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 might consider the procedures performed by the internal auditors because they are employees whose work might be relied upon. Internal auditors can provide a valuable source of information for the independent auditor, and their work may be used to reduce the amount of substantive testing required. Therefore, the independent auditor may consider the internal auditors' work to assess its adequacy and determine how much they can rely on it.

An Independent Auditor Might Consider the Procedures Performed by the Internal