Economics · Auditing
Which of the following circumstances would most seriously cast doubt on the external auditor's ability to rely on the work of internal auditors?
- 1Internal auditors are recruited based on technical qualifications
- 2No audit manuals or working papers are available for inspection✓
- 3The internal audit function reports directly to the audit committee
- 4Management consistently acts on internal audit recommendations
Correct answer
No audit manuals or working papers are available for inspection
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