External auditor Mary Smith may not rely on the work of internal auditor Ray Jones unless
A) Jones is certified (CA, CGA, or CMA).
B) Jones is independent of the client.
C) Jones is supervised by Smith.
D) Smith obtains evidence that supports the competence, integrity, and objectivity of Jones.

Question

Quizplus · Accepted Answer

According to the International Standards on Auditing (ISA), external auditors may use the work of internal auditors if they obtain sufficient evidence that supports their competence, integrity, and objectivity. Simply being certified or independent is not enough to establish the reliability of the internal auditor's work. As long as Smith can obtain this evidence, she may rely on the work of Jones.

External Auditor Mary Smith May Not Rely on the Work