Hanlon Corp

question 16

Multiple Choice

Hanlon Corp. maintains a large internal audit staff that reports directly to the accounting department. Audit reports prepared by the internal auditors indicate that the system is functioning as it should and that the accounting records are reliable. An independent auditor will probably

• A) eliminate tests of controls.
• B) increase the depth of the study and evaluation of administrative controls.
• C) avoid duplicating the work performed by the internal audit staff.
• D) place limited reliance on the work performed by the internal audit staff.

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