In connection with the examination of financial statements by an independent auditor,management suggests that members of the internal audit staff be utilized to minimize audit costs.Which of the following tasks could most appropriately be delegated to the internal audit staff?
A) Selection of accounts receivable for confirmation, based upon the internal auditor's judgment as to how many accounts and which accounts will provide sufficient coverage.
B) Preparation of schedules for negative accounts receivable responses.
C) Evaluation of the internal control for accounts receivable and sales.
D) Determination of the adequacy of the allowance for doubtful accounts.

Question

Quizplus · Accepted Answer

Preparation of schedules for negative accounts receivable responses is a task that does not require any specialized knowledge of auditing or accounting principles. It involves the assembly of information already processed by the accounting system, which can likely be done by the internal audit staff with minimal assistance from the independent auditor. This task can be delegated to the internal audit staff, thereby reducing the amount of work that the independent auditor must perform and minimizing the audit costs. The other tasks mentioned requires specialized knowledge and skills that are typically possessed by the independent auditor.

In Connection with the Examination of Financial Statements by an Independent