Matters that external auditor should consider before placing reliance on the work of internal auditor
- The professional qualifications of the internal auditor both on competency and ethical grounds
- Specialist skills possessed by internal audit staff
- The adequacy of planning, control and documentation in the internal audit department.
- The responsibility of the internal audit department, whether it will to be the board, an audit committee, or to the Chief Accountant.
- The efficiency of the operation of the department
- The scope of the internal audit department’s work. Clearly, a department which covers common ground with the external auditor would be more useful than a department with a very restricted role.
- The level of audit risk inherent in the areas or items to be tested, or in the information to be obtained.