Auditing · Professional Ethics and Independence

Consider the following statements regarding the provision of internal audit services to an external audit client: 1. The risk of the firm assuming management responsibility is entirely eliminated by using a separate team of staff who are not involved in the external audit. 2. The audit firm should consider whether the client has appointed a responsible official to oversee internal audit activities. 3. The materiality of the financial statement amounts affected by the internal audit service should be considered when evaluating the significance of any self-review threat. Which of the following correctly identifies whether these statements are TRUE or FALSE?