What is direct assistance?
Direct assistance is when the external audit team instructs the internal audit team to perform specific audit tests. The external audit team will indicate the type of test, the sample size, etc. Internal audit can perform direct assistance for both test of controls and substantive testing.
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Are internal auditors considered independent?
No, absolutely not. Internal auditors are not considered independent and internal auditors should not be used in place of external auditors. The external audit team can use the work of internal audit as long as the external audit team has appropriately evaluated the competency, objectivity, and the quality of the work performed by the internal […]
What is internal audit?
What does the internal audit team do? Internal audit is a function, typically within a public company, that is responsible for evaluating the design and operating effective of a company’s internal controls. The procedures performed by internal audit are very similar to what the external auditor would perform, however, internal audit is not considered to […]
How can I assess whether the internal audit team is competent?
In order to use the work of internal audit, the external audit team needs to assess the competency of the internal audit team. The external audit team can assess competency by reviewing resumes to understand their educational background and professional credentials (i.e. CPA). The external audit team can also review the work performed by the […]