[amp_mcq option1=”Examine the scope of the internal auditor’s work” option2=”Examine the system of supervising review and documentation of the internal auditor’s work” option3=”Examine the adequacy of the related-audit programme” option4=”All of the above” correct=”option4″]<\/p>\n
The correct answer is D. All of the above.<\/p>\n
When an independent auditor relies on the work of an internal auditor, he should examine the scope of the internal auditor’s work, the system of supervising review and documentation of the internal auditor’s work, and the adequacy of the related-audit programme.<\/p>\n
The scope of the internal auditor’s work refers to the extent to which the internal auditor has examined the financial statements and related information. The independent auditor should determine whether the internal auditor has examined all of the relevant information and whether the scope of the internal auditor’s work is sufficient to support the independent auditor’s opinion.<\/p>\n
The system of supervising review and documentation of the internal auditor’s work refers to the procedures that the internal auditor has in place to ensure that his work is properly supervised and documented. The independent auditor should determine whether the internal auditor’s system of supervision and documentation is adequate to ensure the quality of the internal auditor’s work.<\/p>\n
The adequacy of the related-audit programme refers to the extent to which the independent auditor has considered the work of the internal auditor in planning and performing his own audit. The independent auditor should determine whether the work of the internal auditor is relevant to his own audit and whether he can rely on the work of the internal auditor to reduce the scope of his own audit.<\/p>\n
In addition to the above, the independent auditor should also consider the following factors when relying on the work of an internal auditor:<\/p>\n
The independent auditor should also document his reliance on the work of the internal auditor in his audit report.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”Examine the scope of the internal auditor’s work” option2=”Examine the system of supervising review and documentation of the internal auditor’s work” option3=”Examine the adequacy of the related-audit programme” option4=”All of the above” correct=”option4″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[698],"tags":[],"class_list":["post-32662","post","type-post","status-publish","format-standard","hentry","category-auditing","no-featured-image-padding"],"yoast_head":"\n