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11. In assessing competence and objectivity, the auditor usually considers information obtained from previous experience with the internal audit function, from discussions with management personnel, and from a recent external quality review, if performed, of the internal audit function’s activities How does internal auditing maintain its independence and objectivity?To ensure their independence, internal auditors must carry out their work freely and objectively. They cannot subordinate their judgment on audit matters to that of others, and they should have the support of senior management, the board of directors and the audit committee. What is objectivity as it relates to the internal audit function?Objectivity is an unbiased mental attitude that allows internal auditors to perform engagements in such a manner that they believe in their work product and that no quality compromises are made. Objectivity requires that internal auditors do not subordinate their judgment on audit matters to others. (Source: The IIA). What is the overall objective of the independent auditor?Overall Objectives of the Auditor Overall objectives of an IA with respect to audit of financial statements are as under: To obtain reasonable assurance whether the financial statements are free from material misstatement and it’s prepared using applicable financial reporting framework. When assessing the internal auditor’s competence The auditor should obtain information about the?11. In assessing competence and objectivity, the auditor usually considers information obtained from previous experience with the internal audit function, from discussions with management personnel, and from a recent external quality review, if performed, of the internal audit function’s activities When considering the competence of internal auditors external auditors should obtain evidence about the?To determine whether internal audit work can be used to obtain audit evidence, the external auditor should evaluate (1) the competence of the internal audit function, (2) the extent to which its organizational status and policies and procedures support its objectivity, and (3) its application of a systematic and How do you assess an internal auditor?The only way to determine whether an internal audit is effective is to ask the stakeholders whether they are comfortable that they are receiving the assurance they need on the risks that matter to them and to the organisation. Then you start looking at additional value that is provided. What competencies should an auditor have?Five Skills Auditors Need To Succeed Today
16-Jul-2018 How do auditors maintain independence?To be independent, the auditor must be intellectually honest; to be recognized as independent, he must be free from any obligation to or interest in the client, its management, or its owners. How is internal audit independent?Internal auditors are independent once they render impartial and unbiased judgment within the conduct of their engagement. To make sure this independence, best practices suggest the CAE should report on to the audit committee or its equivalent. Why is it important for an internal auditor to be independent and possess objectivity?Benefits of Independence and Objectivity It means that conclusions will be fair and unbiased, based on evidence and not unduly influenced by management or personal relationships. It means that recommendations will be in the best interest of the client. Does internal auditing require independence?One could argue that for internal auditors to do their jobs successfully, this requires full independence from senior management in order that the board is able to rely on their internal audit department for the necessary assurance in relation to internal controls, risk prevention and so on. What factors does an external auditor consider when assessing the objectivity of a client’s internal audit function?In assessing competence and objectivity, the auditor usually considers information obtained from previous experience with the internal audit function, from discussions with management personnel, and from a recent external quality review, if performed, of the internal audit function’s activities. What does it mean for an auditor to be objective?6.08 The objectives are what the audit is intended to accomplish. They identify the audit subject matter and performance aspects to be included, and may also include the potential findings and reporting elements that the auditors expect to develop. What are the objectives for the internal auditing function in an organization?The purpose of auditing internally is to provide insight into an organization’s culture, policies, procedures, and aids board and management oversight by verifying internal controls such as operating effectiveness, risk mitigation controls, and compliance with any relevant laws or regulations. What is objectivity and impartiality in auditing?Impartiality is about being neutral and fairly giving all sides an equal value without bias.Objectivity is all about sticking to the observable facts without bias. They are both different methods for overcoming our personal bias. What are the objectives of the auditor?The auditor’s objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes the auditor’s opinion. Which deals with overall objectives of the independent auditor and conduct of an audit in accordance with Standards on auditing?To provide the basis for the proper understanding of the overall objective of the auditor and the objectives and requirements of the ISAs, proposed ISA 200 (Revised and Redrafted) discusses the premises on which an audit is conducted, the nature of an audit of financial statements, and related concepts. What are internal auditor competency requirements?11. In assessing competence and objectivity, the auditor usually considers information obtained from previous experience with the internal audit function, from discussions with management personnel, and from a recent external quality review, if performed, of the internal audit function’s activities What are the criteria for an internal audit?Core Skills and Competencies for Internal Auditors Communication skills, including oral communication, report writing, and presentation skills. Problem-solving skills (i.e., conceptual and analytical thinking) Ability to promote the value of internal audit among key employees within the organization. When assessing the competence of the internal auditors an independent CPA should obtain information about the group of answer choices?11. In assessing competence and objectivity, the auditor usually considers information obtained from previous experience with the internal audit function, from discussions with management personnel, and from a recent external quality review, if performed, of the internal audit function’s activities How external auditors will use the work of internal auditors?According to AU-C 330.03, which of the following terms identifies a requirement for audit evidence? When assessing the competence of the internal auditors, an independent CPA should obtain information about the: quality of the internal auditors’ working-paper documentation What type of audit evidence is required by the auditor to form an audit opinion on the financial statement?In addition, the external auditor may use internal auditors to perform audit procedures under the direction, supervision, and review of the external auditor (referred to as direct assistance in this section) (see paragraphs . How do you assess internal audit?The only way to determine whether an internal audit is effective is to ask the stakeholders whether they are comfortable that they are receiving the assurance they need on the risks that matter to them and to the organisation. Then you start looking at additional value that is provided. How is internal audit effectiveness measured?Six metrics for internal audit effectiveness: 01-May-2012 What factors do external auditors generally consider before determining whether the work of the internal audit function can be relied upon for the purposes of the audit?It was found that all three factors affected external auditors' reliance judgment. There were significant interactions between “objectivity” and “competence”, between “objectivity” and “work performed” and three way interactions among those factors.
What should external auditors consider when deciding whether to rely on the work of internal auditors?As a starting point the external auditor should consider the amount of judgment needed in (i) planning and performing relevant audit procedures and (ii) evaluating audit evidence gathered. The greater the level of judgment required, the narrower the scope of work that can be assigned to internal auditors.
What are some of the factors to consider when conducting an internal audit?The findings indicate that the main factors affecting internal audit effectiveness are: (1) quality of internal audit, (2) competence of internal audit team, (3) independence of internal audit and (4) management support.
When assessing an internal auditor's objectivity An auditor should?In assessing the objectivity of internal auditors, an independent auditor should: determine the organizational level to which the internal auditors report. In which of the following circumstances is an auditor most likely to rely on work done by internal auditors?
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What factors does an external auditor consider when assessing the objectivity of a clients internal audit function?
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