The following factors or circumstances where the external auditor can rely on the work of the internal auditor:
- The professional qualifications of the internal auditor both on competency and ethical grounds
- The adequacy of planning, control and documentation in the internal audit department
- The responsibility of the internal audit department, whether it be to board of director generally, an audit committee or to the Head of Accounts Or Finance
- The efficiency of operations of the Internal Audit Department
- The scope of the internal audit department’s work. Naturally, where the internal audit departments cover common ground with the external auditor, this would be more useful than a department with a very restricted role.
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