Question

In determining the extent to which the auditor may use the work of others in the audit of ICFR, the auditor should do all of the following except?

1) be ready to document the extent to which he or she relied on the work.
2) evaluate the risks associated with the controls subjected to the work of others.
3) evaluate the competence and objectivity of the individuals who performed the work.
4) All of these are required.

Answer 1

In auditing ICFR, an auditor must document their reliance on others' work, assess risks, and evaluate the competence and objectivity of the individuals involved; however, stating that 'All of these are required' is not one of the requirements.

Step-by-step explanation:

In determining the extent to which the auditor may use the work of others in the audit of Internal Control over Financial Reporting (ICFR), the auditor is not required to do one of the options provided in the question. Specifically, the auditor is expected to:

1. Be prepared to document the extent to which he or she relied on the work of others.
2. Evaluate the risks associated with the controls subjected to the work of others.
3. Evaluate the competence and objectivity of the individuals who performed the work.

However, the question includes 'All of these are required' as an option, which is incorrect. The auditor should perform all the activities except stating that all activities are required.