AUD 2.5 - Using The Work Of Others

Question 1

How can the work of internal audit be used for financial statement areas with high risk of material misstatement or a high degree of subjectivity?

Answer 1

The internal auditors work alone cannot be used, the CPA auditor must also complete testing

Question 2

How can the work of internal audit be used for financial statement areas with a low risk o material misstatement or low degree of subjectivity?

Answer 2

Direct testing by the internal auditor could be sufficient

Question 3

Education, professional certification, experience, performance evaluations, and quality of internal audit documentation all reflect an internal auditors what?

Answer 3

Competence

Question 4

The organizational level to which the internal auditor reports as well as policies prohibiting audits of areas the internal auditor lacks independence reflects an internal auditors what?

Answer 4

Objectivity

Question 5

What are the different names used for auditor and management specialists under SAS and PCAOB?

Answer 5

SAS : Internal audit specialist - external auditor specialist - management specialist
PCAOB : Auditor employed specialist - auditor engaged specialist - company specialist

Question 6

If the specialists findings indicate that the financial statements are not in conformity with GAAP, what opinion is required?

Answer 6

Qualified or adverse

Question 7

If an auditor is expressing an unmodified (unqualified) opinion, should the specialist be referenced in the auditors report?

Answer 7

NO

Question 8

Is an IT auditor considered a specialist?

Answer 8

No