With respect to relying on the work of the internal audit function, external auditors should ____________.
A)always be willing to accept work completed and documentation provided
B)never be willing to accept work completed by the internal audit function
C)impartially assess the objectivity, competence and processes of the internal audit function
D)always assign junior members of the audit team to assist the internal audit function

Question

Quizplus · Accepted Answer

External auditors must evaluate the objectivity, competence, and processes of the internal audit function to determine the extent to which they can rely on their work. They should not automatically accept their work but should instead perform their own assessment to ensure that their reliance is justified. Option A and D are incorrect since accepting work without proper evaluation may compromise the quality of the audit. Option B is also incorrect as internal auditors are an important part of the overall control system and their work can be relied upon if they meet certain criteria.

With Respect to Relying on the Work of the Internal