Final answer:
An independent auditor may rely on the work of the internal audit function, evaluating its objectivity and competence to determine the extent of reliance, and consequently affecting the efficiency and cost/benefit tradeoff of their audit engagement.
Step-by-step explanation:
An independent auditor might consider the procedures performed by the internal audit function because they are employees whose work might be relied upon. The internal audit function is inherently part of the organization's bureaucracy and plays a critical role in monitoring and evaluating controls, processes, and procedures internally. An independent auditor may leverage the work done by internal auditors to assess risk and plan their own audit, potentially reducing the extent of testing they would otherwise conduct.
In this context, the internal audit function's familiarity with the organization's processes and systems can be invaluable. However, an auditor must evaluate the objectivity and competence of the internal audit function to determine how much reliance they can place on the auditors' work.
This consideration can impact the audit procedures employed by the independent auditor and, consequently, affect the overall efficiency and result of the audit engagement. However, if the independent auditor concludes that the internal audit function's work is sufficiently reliable, this may have a positive impact on the cost/benefit tradeoff when planning and conducting an audit.