Question 1
External auditors would consider internal auditors effective if they
◦ are independent of the operating units being evaluated.
◦ are competent and well trained.
◦ apply a systematic and disciplined approach, including quality control.
◦ All of these.
Question 2
External financial statement auditors must obtain evidence regarding what attributes of an internal audit department if the external auditors intend to rely on the internal auditor's work?
◦
| If they have performed relevant audit tests of the internal controls and financial statements | Competence |
| Yes | Yes |
◦
| If they have performed relevant audit tests of the internal controls and financial statements | Competence |
| No | No |
◦
| If they have performed relevant audit tests of the internal controls and financial statements | Competence |
| Yes | No |
◦
| If they have performed relevant audit tests of the internal controls and financial statements | Competence |
| No | Yes |
External acoustic meatus
Examples of internal controls.
Contrast of ventilation and external and internal respiration.
Internal female reproductive organs.
Internal rotation of the shoulders