Final answer:
When assessing the internal auditor's competence, the independent CPA should obtain information about the internal auditor's educational background, experience and training, and compensation.
Step-by-step explanation:
When assessing the internal auditor's competence, the independent CPA should obtain information about the internal auditor's educational background, experience and training, and compensation.
The internal auditor's educational background is important because it provides insights into the auditor's knowledge and expertise in the field of auditing. For example, a bachelor's or master's degree in accounting or finance would demonstrate a strong foundation in the subject matter.
Experience and training are also crucial factors in assessing competence. The auditor's previous work experience, such as internships or previous audit engagements, can indicate their level of exposure to different audit environments and industries. Additionally, any specialized training or certifications specific to auditing, such as the Certified Internal Auditor (CIA) designation, would further enhance their competence.
Lastly, obtaining information about the auditor's compensation helps assess their value, as it can provide insights into their level of expertise and market demand. Higher compensation may indicate a more experienced and skilled auditor.