In making judgments about the effect of the internal auditors' work on the external auditor's procedures in specific audit areas,which of the following is not among three issues related to the audit areas that should be considered by the external auditor?
A)Materiality of the financial statement amounts.
B)Risk of material misstatement of the assertions related to these financial statement amounts.
C)Review of quality of audit policies,programs,and procedures.
D)Degree of subjectivity involved in the evaluation of the audit evidence gathered in support of the assertions.

Question

Quizplus · Accepted Answer

The external auditor should consider the materiality of the financial statement amounts, the risk of material misstatement of the assertions related to these financial statement amounts, and the degree of subjectivity involved in the evaluation of the audit evidence gathered in support of the assertions. However, the review of quality of audit policies, programs, and procedures is not directly relevant to the effect of the internal auditor's work on the external auditor's procedures in specific audit areas.

In Making Judgments About the Effect of the Internal Auditors