An auditor decides to use the work of an internal auditor to assist in the audit of accounts payable. Which of the following steps is the external auditor REQUIRED to perform?

Answer options:

Supervise the internal auditor in every task performed.

Assess the competence and objectivity of the internal auditor.

Share all audit responsibility with the internal auditor.

Reduce the audit fee to reflect the work performed by the internal auditor.

How to approach this question

Recall AU-C 610. Before using internal audit work, you must trust them. Trust comes from Competence and Objectivity.

Full Answer

B.Assess the competence and objectivity of the internal auditor.✓ Correct

The external auditor must evaluate the competence (education, certification, quality of work) and objectivity (who they report to) of the internal auditors before relying on their work or using them for direct assistance.

Common mistakes

Thinking the external auditor can share responsibility (they cannot).

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