In assessing the objectivity of internal auditors, an independent auditor should:

Last Updated on February 3, 2022 by Admin 3

In assessing the objectivity of internal auditors, an independent auditor should:

  • Evaluate the quality control program in effect for the internal auditors.
  • Examine documentary evidence of the work performed by the internal auditors.
  • Test a sample of the transactions and balances that the internal auditors examined.
  • Determine the organizational level to which the internal auditors report. 
Explanation: 
Choice “D” is correct. When assessing the internal auditors’ objectivity, the auditor should obtain information about whether the internal auditor reports to an officer of sufficient status to ensure broad audit coverage and adequate consideration of, and action on, the findings and recommendations of the internal auditors.
Choice “A” is incorrect. A quality control program would impact the competence of the internal audit staff, not their objectivity.
Choice “B” is incorrect. Examining documentary evidence produced by the internal auditors would help the auditor evaluate the quality and effectiveness of the internal auditors’ work, but would not help assess objectivity.
Choice “C” is incorrect. Testing a sample of transactions and balances examined by the internal auditors would help the auditor evaluate the quality and effectiveness of the internal auditors’ work, but would not help assess objectivity.
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