ExpertHard1 markMultiple Choice
CPA · Question 09 · Area II: Risk Assessment
An auditor is planning the audit of a nonissuer. The auditor intends to use the work of the client's internal audit function to assist in obtaining audit evidence. Which of the following factors would LEAST likely influence the auditor's determination of the extent to which the internal auditors' work can be used?
An auditor is planning the audit of a nonissuer. The auditor intends to use the work of the client's internal audit function to assist in obtaining audit evidence. Which of the following factors would LEAST likely influence the auditor's determination of the extent to which the internal auditors' work can be used?
Answer options:
A.
The competence of the internal audit function.
B.
The objectivity of the internal auditors.
C.
The internal auditors' report directly to the controller.
D.
The specific software used by the internal auditors for flowcharting.
How to approach this question
Identify the core criteria for using internal auditors: Competence, Objectivity, and Systematic Approach.
Full Answer
D.The specific software used by the internal auditors for flowcharting.✓ Correct
The auditor evaluates Competence, Objectivity, and a Systematic/Disciplined Approach (AU-C 610). Reporting lines (Option C) directly affect objectivity. The specific software used (Option D) is a matter of mechanics and is least likely to influence the fundamental decision of whether/how much to rely on their work, provided the documentation is clear.
Common mistakes
Thinking reporting lines don't matter (they are crucial for objectivity).
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