Using the work of an internal audit function

Question 1

When using the internal audit function to provide direct assistance, what two matters should the external auditor evaluate?

Answer 1

1. )Objectivity—the internal audit function’s organizational status and the objectivity of the internal auditors
2. )Competence of the internal auditors

Question 2

Why isn’t a “systematic and disciplined approach, including quality control” a relevant consideration when the external auditor uses an internal audit function to provide direct assistance?

Answer 2

Because the work performed by the internal audit function is subject to the external auditor’s direction, supervision, and review

Question 3

What are the two ways the external auditor might use the work of an internal audit function?

Answer 3

1. )To obtain audit evidence

2. )To provide direct assistance

Question 4

When using the work of the internal audit function to obtain audit evidence, what three matters should the external auditor evaluate?

Answer 4

1. )Objectivity—the internal audit function’s organizational status and the objectivity of the internal auditors
2. )Competence of the internal auditors
3. )Whether the internal audit function applies a “systematic and disciplined approach, including quality control”