Economics · Using the Work of Internal Auditors

When an external audit firm uses the internal audit department of a client to provide direct assistance during an audit, evaluate the validity of the following statements: 1. Internal auditors perform procedures under the direction, supervision, and review of the external audit team. 2. External auditors should only use direct assistance if the risk of material misstatement in relation to the system is high. 3. The external audit team should document its review of the work performed by the internal auditors. 4. The internal auditors will be separately liable for any material misstatements in the work they have performed.