Your firm is the external auditor of Bangers-4-U Ltd, a car hire company. The company has an internal audit department, which you have assessed as being well resourced, and an effective and professional team. You are planning your audit work for the year ended 30 June 2015 and are considering the extent to which you will be able to place reliance on their work as part of your audit.

From your initial discussions with the chief internal auditor you have established that the key areas that they have concerned themselves with during the year are:

1. the sales system and the system for recording invoices for vehicle hire as well as the vehicle scheduling system, which aims to minimize the time that vehicles are sitting idle 

2. the vehicle acquisition process and asset register 

3. purchase ledger processes for paying suppliers.

Required

Discuss the extent to which you will attempt to rely on the work carried out by the internal audit department.