The external auditor should obtain a
sufficient understanding of the internal audit
function because
a. The understanding of the internal audit
function is an important substantive test
to be performed by the external auditor.
b. The audit programs, working papers, and
reports of internal auditors may often be
used as a substitute for the work of the
external auditor's staff.
c. The procedures performed by the internal
audit staff may eliminate the external
auditor's need for considering internal
control.
d. The work performed by internal
auditors may be a factor in
determining the nature, timing, and
extent of the external auditor's
procedures.
sufficient understanding of the internal audit
function because
a. The understanding of the internal audit
function is an important substantive test
to be performed by the external auditor.
b. The audit programs, working papers, and
reports of internal auditors may often be
used as a substitute for the work of the
external auditor's staff.
c. The procedures performed by the internal
audit staff may eliminate the external
auditor's need for considering internal
control.
d. The work performed by internal
auditors may be a factor in
determining the nature, timing, and
extent of the external auditor's
procedures.