CPA AUDITING - STUDY UNIT 3 Strategic Planning Issues: Core Concepts A. The understanding of the internal audit function must be sufficient to identify activities relevant to audit planning. 1. If the auditor decides that internal audit activities are relevant and that it is efficient to consider how they might affect audit procedures, the auditor should assess the competence and objectivity of the internal auditors. (Their work may provide useful information about internal control , affect the overall risk assessment and decisions about audit procedures, and provide direct evidence about material misstatements.) 2. Judgments about matters affecting the report should always be those of the auditor. If the work of the internal auditors significantly affects the auditor’s work, the auditor should evaluate the quality and effectiveness of the internal auditors’ work. B. A specialist , preferably one unrelated to the client, may be used to obtain competent evidence. The auditor should become satisfied about the qualifications and reputation of the specialist, and
This is the end of the preview. Sign up
access the rest of the document.
This note was uploaded on 08/29/2010 for the course CBEAM AUD taught by Professor Gleim during the Spring '10 term at De La Salle Lipa.