The independent auditor should acquire an understanding of the internal audit function as it relates to the assessment of control risk because
A) Internal auditors' 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 auditors 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 assist the independent auditor in determining the nature, timing, and extent of their procedures. Internal audit reports and findings can provide valuable insight into the effectiveness of internal control and the areas with higher control risk, which can inform the independent auditor's risk assessment and audit approach. However, the independent auditor cannot solely rely on the work of the internal audit function and must still perform their own procedures to obtain sufficient evidence.

The Independent Auditor Should Acquire an Understanding of the Internal