The independent auditor should acquire an understanding of the internal audit function as it relates to the independent auditor's study and evaluation of internal control because the:
A) audit programs, working papers, and reports of internal auditors can often be used as a substitute for the work of the independent auditor's staff.
B) procedures performed by the internal audit staff may eliminate the independent auditor's need for an extensive study and evaluation of internal control.
C) work performed by internal auditors may be a factor in determining the nature, timing, and extent of the independent auditor's procedures.
D) understanding of the internal audit function is an important substantive test to be performed by the independent auditor.

Question

Quizplus · Accepted Answer

The work performed by the internal auditors is a factor in determining the nature, timing, and extent of the independent auditor's procedures. Therefore, the independent auditor should acquire an understanding of the internal audit function as it relates to their study and evaluation of internal control. The option A and B are incorrect because the internal auditors' work cannot be used as a substitute or eliminate the need for the independent auditor's work. Option D is incorrect because understanding the internal audit function is not a substantive test, but rather a factor that influences the extent of the auditor's substantive procedures.

The Independent Auditor Should Acquire an Understanding of the Internal