Why might the decisions about materiality and risks be different for the internal auditor than for the external auditor when conducting an audit of a system?
A)The auditors are applying different skills during the conduct of the audit.
B)External auditors have different expectations with respect to quality control.
C)Internal auditors focus only on the potential for dollar errors internally.
D)External users may have different needs than management.

Question

Quizplus · Accepted Answer

External auditors are primarily concerned with providing an accurate and reliable opinion on the financial statements for the benefit of external users, such as investors and creditors. Therefore, their decisions on materiality and risks will be influenced by the needs and expectations of these users. On the other hand, internal auditors are focused on providing assurance and consulting services to management, and may have different priorities when determining materiality and risks.

Why Might the Decisions About Materiality and Risks Be Different