During an audit an internal auditor may provide direct assistance to an independent CPA in
Miller Retailing, Inc., maintains a staff of three full-time internal auditors. The independent auditor has found that they are competent and objective. Moreover, the work of the internal auditors is relevant to the audit, and it is efficient to consider how that work may affect the audit. The independent auditor most likely
will Answer (C) is correct. In assessing the competence and objectivity of an entity’s internal auditor, an independent auditor would least likely consider information obtained from Answer (B) is correct. Which of the following factors would the independent auditor most likely consider in assessing the objectivity of an internal auditor? Answer (B) is correct. The independent auditor should understand the internal audit function as it relates to internal control because Answer (A) is correct. An internal auditor would least likely provide direct assistance to the auditor in Answer (D) is correct. The work of internal auditors may affect
the independent auditor’s I, II, and III. Which of the following statements is correct regarding an independent auditor’s reliance on a client’s internal audit staff? Answer (D) is correct. An auditor might consider the
procedures performed by the internal auditors because Answer (C) is
correct. Which of the following factors most likely would assist an auditor in assessing the objectivity of the internal auditor? Answer (A) is correct. The company being audited
has an internal auditor that is both competent and objective. The auditor wants to assign tasks for the internal auditor to perform. Under these circumstances, the auditor may Answer (B) is correct. In which of the following circumstances is an auditor most likely to rely on work done by internal auditors? Answer (B) is correct. An internal auditor’s work would most likely affect the nature, timing, and extent of an independent auditor’s auditing procedures
when the internal auditor’s work relates to assertions about the Answer (A) is correct. Can internal auditors provide direct assistance?(b) Direct assistance – The use of internal auditors to perform audit procedures under the direction, supervision and review of the external auditor.
Can internal auditor provide direct assistance to statutory auditor?The external auditor has to exercise professional judgment when determining whether the internal auditors, subject to law and regulation, can be used to provide direct assistance in the financial statement audit of an entity.
When assessing the internal auditors competence the independent CPA should obtain information?When assessing the competence of the internal auditors, an independent CPA should obtain information about the: quality of the internal auditors' working-paper documentation.
What is involved in an audit by an independent external auditor?An independent auditor either works for a public accounting firm or is self-employed. An auditor examines financial statements and related data, analyzes business operations and processes, and provides recommendations on achieving greater efficiency.
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