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arrie, an external auditor working on the attest engagement for Jackson Enterprises is discussing the audit of accounts ceivable and the associated allowance accounts with

image text in transcribed arrie, an external auditor working on the attest engagement for Jackson Enterprises is discussing the audit of accounts ceivable and the associated allowance accounts with some of the staff in the internal audit function. The staff have advised er that they have already completed the audit of these accounts, and can provide Carrie with appropriate documentation ccordingly. Which of the following would represent an appropriate exercise of professional skepticism by Carrie? Carrie should advise the internal audit function that because the allowance accounts contains subjective measurements, it is required to be audited by the external auditors. As the internal audit function is considered to be effective and strong by the external auditors, no further action by Carrie is required. Carrie should accepting the evidence and documentation supplied by the internal audit function, but should recheck this area and perform a separate audit on the assumption that the internal auditors may be covering up error or fraud. Carrie should consider accepting the evidence and documentation from the internal audit function, but should also consider applying checks and audit procedures to corroborate the conclusions reached

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