What do auditors consider when determining the extent to which the internal auditors' work will affect the auditors' procedures?
A)The materiality of the account balance or transaction, the risk of material misstatement of the assertions, and the amount of subjectivity involved in evaluating the evidence gathered.
B)Only the materiality of the account balance or transaction and the risk of material misstatement of the assertions.
C)Only the risk of material misstatement of the assertions related to the account balance, transaction, or disclosure and the amount of subjectivity involved in evaluating evidence gathered.
D)Only the amount of subjectivity involved in evaluating the evidence gathered.

Question

Quizplus · Accepted Answer

Auditors consider a variety of factors when determining the extent to which internal audit work will affect their procedures. These factors include the materiality of the account balance or transaction, the risk of material misstatement of the assertions, and the amount of subjectivity involved in evaluating the evidence gathered. By considering these factors, auditors can determine how much reliance they can place on the work of internal auditors and adjust their audit procedures accordingly. Option B, C and D provide incomplete representation of the factors that auditors consider.

What Do Auditors Consider When Determining the Extent to Which