Economics · Auditing
External auditors may place reliance on internal auditors' work. Which of the following correctly describes the prerequisite condition for this?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Internal audit work can only be used in public sector undertakings
- 2Yes, external auditors can always rely on it blindly without any evaluation
- 3Internal auditors are never independent, so their work can never be relied upon
- 4External auditors need to assess the objectivity, competence, and work of the internal audit function first✓
Correct answer
External auditors need to assess the objectivity, competence, and work of the internal audit function first
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Auditing MCQs →Want more practice questions on Auditing?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Auditing