The independent auditor should acquire an understanding of the internal audit function as it relates to the assessment of control risk because
A) Internal audit programs, audit documents, and reports can eliminate the need for the independent auditor's staff.
B) The procedures performed by the internal audit staff may eliminate the independent auditor's need for an extensive study and evaluation of internal control.
C) The work performed by internal audit personnel may be a factor in determining the nature, timing, and extent of the independent auditor's procedures.
D) The understanding of the internal audit function is an important substantive procedure to be performed by the independent auditor.

Question

Quizplus · Accepted Answer

The work performed by the internal audit function can provide valuable information to the independent auditor in assessing the risk of material misstatement and determining the nature, timing, and extent of audit procedures. However, the independent auditor cannot rely solely on the work performed by the internal audit function and must still perform their own independent procedures. A and B are incorrect because the independent auditor's role cannot be eliminated by the work of the internal audit function. D is incorrect because understanding the internal audit function is a preliminary analytical procedure and not a substantive procedure.

The Independent Auditor Should Acquire an Understanding of the Internal