Which of the following statements is true?
A)External auditors must consider the internal audit function as part of obtaining an understanding of a company's internal control structure.
B)External auditors must review all work performed by internal auditors.
C)External auditors must investigate the competence and objectivity of internal auditors.
D)External auditors must share responsibility for the work of internal auditors if it is used for evidence for the financial statement audit.

Question

Quizplus · Accepted Answer

External auditors are required to consider the internal audit function as a part of obtaining an understanding of a company's internal control structure. This is because the internal audit function provides information about the company's internal control structure, which is useful to external auditors in planning the financial statement audit. However, external auditors are not required to review all work performed by internal auditors, investigate the competence and objectivity of internal auditors, or share responsibility for the work of internal auditors if it is used for evidence for the financial statement audit.

Which of the Following Statements Is True