In assessing the competence of a client's internal auditor, an independent auditor most likely would consider the:

Question

Quizplus · Accepted Answer

Choice "A" is correct. In assessing the competence of a client's internal auditor, an independent auditor would consider the internal auditor's compliance with professional auditing standards. Such compliance could be evaluated by reviewing the audit plan and auditing procedures used by the internal auditor, as well as by assessing the quality of audit documentation provided. Choice "B" is incorrect. The internal auditor's access to management salary data has no bearing on his or her competency. Choice "C" is incorrect. The external auditor's assessment of control risk might be based in part on the existence and effectiveness of an internal audit group, but such assessment would not provide information regarding the competency of the internal auditor. Choice "D" is incorrect. Ratio analysis might be used to identify unusual transactions or events, but it would not provide information regarding the competency of the internal auditor.

In Assessing the Competence of a Client's Internal Auditor, an Independent