Which statement is incorrect regarding the external auditor's consideration of the work of internal auditing? а. During the course of planning the audit, the external auditor should perform a preliminary assessment of the internal audit function when it appears that internal auditing is relevant to the external audit of the financial statements in specific audit areas. b. The external auditor should consider the activities of internal auditing and their effect, if any, on external audit procedures. С. When the external auditor intends to use specific work of internal auditing, the external auditor need not evaluate and test that work to confirm its adequacy for the external auditor's purposes. d. The external auditor should obtain a sufficient understanding of internal audit activities to assist in planning the audit and developing an effective audit approach.

Which statement is incorrect regarding the external auditor's consideration of the work of internal auditing? а. During the course of planning the audit, the external auditor should perform a preliminary assessment of the internal audit function when it appears that internal auditing is relevant to the external audit of the financial statements in specific audit areas. b. The external auditor should consider the activities of internal auditing and their effect, if any, on external audit procedures. С. When the external auditor intends to use specific work of internal auditing, the external auditor need not evaluate and test that work to confirm its adequacy for the external auditor's purposes. d. The external auditor should obtain a sufficient understanding of internal audit activities to assist in planning the audit and developing an effective audit approach.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Which statement is incorrect regarding the
external auditor's consideration of the work of
internal auditing?
а.
During the course of planning the audit, the
external auditor should perform a preliminary
assessment of the internal audit function
when it appears that internal auditing is
relevant to the external audit of the financial
statements in specific audit areas.
b.
The external auditor should consider the
activities of internal auditing and their effect, if
any, on external audit procedures.
C.
When the external auditor intends to use
specific work of internal auditing, the external
auditor need not evaluate and test that work
to confirm its adequacy for the external
auditor's purposes.
d.
The external auditor should obtain a sufficient
understanding of internal audit activities to
assist in planning the audit and developing an
effective audit approach.

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