The work of internal auditors may affect the independent auditor's
A) Procedures performed in obtaining an understanding of the internal control structure and in assessing the risk of material misstatement only.
B) Procedures performed in obtaining an understanding of the internal control structure and substantive tests performed in gathering direct evidence only.
C) Procedures performed in assessing the risk of material misstatement and substantive tests performed in gathering direct evidence only.
D) Procedures performed in obtaining an understanding of the internal control structure and in assessing the risk of material misstatement and substantive tests performed in gathering direct evidence.

Question

Quizplus · Accepted Answer

The work of internal auditors may affect the independent auditor's procedures performed in obtaining an understanding of the internal control structure, in assessing the risk of material misstatement, and in performing substantive tests to obtain direct evidence. As such, it is recommended that the independent auditor coordinate and communicate with the internal audit department to avoid duplication of efforts and ensure that the work performed by the internal auditors is reliable and relevant to the audit objectives.

The Work of Internal Auditors May Affect the Independent Auditor's