Question

If the internal auditor is competent and objective, the auditor may generally rely on the work of an internal auditor in certain areas to reduce the amount of external audit work in these areas.

a)True
b)False

Answer 1

The statement is true. If the internal auditor is competent and objective, the external auditor can rely on their work in certain areas to reduce the amount of external audit work in those areas. option a

Step-by-step explanation:

The statement is true. If the internal auditor is competent and objective, the external auditor can rely on their work in certain areas to reduce the amount of external audit work in those areas.

Internal auditors are professionals within an organization who evaluate and provide assurance on internal control processes. When they perform audits and provide reliable findings, the external auditor can rely on their work to gain comfort about the controls and risks in those specific areas.

However, it's important for the external auditor to assess the competence and objectivity of the internal auditor before relying on their work. The external auditor should also review and test the work performed by the internal auditor to ensure its accuracy and completeness. Option a