Question
John Shultz, an independent auditor, wants to utilize the internal audit function to provide direct assistance as well as use the work of the internal
John Shultz, an independent auditor, wants to utilize the internal audit function to provide direct assistance as well as use the work of the internal audit function in obtaining evidence. In order to utilize the internal audit function, John needs to be satisfied about the competency and objectivity of the internal auditors as well as whether the internal audit function applies a systematic and disciplined approach.
For each of the following inquiries, doubleclick on the associated shaded cell and determine whether the inquiry is regarding:
(1) the level of competency of the internal audit function,
(2) the objectivity of the internal auditors, or
(3) whether the internal audit function applies a systematic and disciplined approach.
Inquiry | Factor |
1. Are internal auditors restricted from communicating their findings to the external auditor? | Objectivity |
2. Is the internal audit function adequately and appropriately resourced relative to the size of the entity? | |
3. Does the internal audit function have periodic external quality assessments? | |
4. Do any of the internal auditors have the CPA designation? | |
5. Does the internal audit function have appropriate quality control procedures? | |
6. Do those charged with governance determine employment decisions related to their internal audit function? | |
7. How many years of experience do the internal auditors have in working as an internal auditor? |
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