Question

2) Which of the following areas can external auditors rely on internal auditors' work in auditing internal controls?

Multiple Choice

A) Evaluation of the auditing environment.

B) All testing of the operating effectiveness of internal control activities.

C) As providing the principle evidence for the external auditors' opinion.

D) Testing of low risk internal control activities.

Answer 1

In auditing, testing of low risk internal control activities is the area where external auditors rely on internal auditors work in auditing internal controls. All other areas like evaluation of auditing environment, testing all of the operating effectiveness of internal control activities, and providing the principle evidence for the external auditors opinion, in all these cases the external auditor do not rely on internal auditors work in auditing internal controls.

Hence, option D is the correct answer.

SUMMARY:

Option D is the correct answer.