The Independent Auditor Should Acquire an Understanding of the Internal

question 38

Multiple Choice

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.