Final answer:
In assessing an internal audit function's competence, a CPA looks into the qualifications and quality of the internal audit staff, resources, and their authority within the organization. Professional standards adherence and the function's objectivity are also examined.
Step-by-step explanation:
In assessing the competence of the internal audit function, an independent CPA most likely would obtain information about the qualifications of the internal audit staff, the quality of the internal audit work, and whether the internal audit function is adequately resourced and has sufficient authority within the organization. The CPA would review the internal audit team's professional certifications, continuing education, and adherence to professional standards such as those from the Institute of Internal Auditors (IIA).
The CPA might also review the scope of the internal audit work plan, assess the function's reporting lines, examine previous internal audit reports for thoroughness and accuracy, and inquire into management's responses to internal audit findings. An assessment of the objectivity of the internal audit function, the complexity and size of the organization, and the ability of internal audit to perform its duties free from undue influence are other considerations that would also be relevant.