7 matters which external auditors should address before placing reliance on the work of internal auditor.



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.

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