North, CPA, is planning an independent audit of the financial statements of General Company. In determining the nature, timing, and extent of the audit procedures, North is considering General’s internal audit function, which is staffed by Tyler.Required:a. In what ways can the internal auditor’s work be relevant to North, the independent auditor?b. What factors should North consider, and what inquiries should North make in deciding whether to use Tyler’s internal audit work?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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North, CPA, is planning an independent audit of the financial statements of General Company. In determining the nature, timing, and extent of the audit procedures, North is considering General’s internal audit function, which is staffed by Tyler.
Required:
a. In what ways can the internal auditor’s work be relevant to North, the independent auditor?
b. What factors should North consider, and what inquiries should North make in deciding whether to use Tyler’s internal audit work?

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