You are the auditor assigned to audit ABC utility company. While interviewing the internal auditor you...
You are the auditor assigned to audit ABC utility company. While interviewing the internal auditor you discover that he has done some evaluation and testing on the control environment for his superior the V.P. What should you do as an external auditor to determine if you can use work from the internal auditor? Can you-the external auditor even rely on the work of the internal auditor?
Homework Answers
The external auditor can rely on internal auditor and use the work of internal auditor after considering the following points
- Qualification & expertise of Internal auditor
- approach adopted by internal auditor
- External auditor should not be probihited by law regarding taking help of internal auditor
- independence of internal auditor
- checking of working of internal auditor
- checking the assumptions and estimates made by internal auditor.
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