Auditing standards prohibit reliance on the work of internal auditors due to the lack of independence of the internal auditors.

Question

Quizplus · Accepted Answer

This statement is false. Auditing standards permit reliance on the work of internal auditors if certain conditions are met, including that the internal auditors are competent and objective, and their work is properly supervised, reviewed and tested by the external auditor. However, the external auditor must still exercise professional judgement and perform their own procedures to verify the work of the internal auditors.

Auditing Standards Prohibit Reliance on the Work of Internal Auditors