- The internal auditor?s qualifications. He should be a qualified end experienced accountant with experience in an auditing environment.
- Past experience. If the external auditor has had some prior relationship with the internal auditor, he is in a good position to assess the degree of reliance on the latter‘s work.
- Internal auditor?s independence. The external auditor should first as certain whether the internal auditor did his work independent of management or perhaps his duties were compromised by pressure from management.
- Conflict of interest. If the internal auditor has some stake in the company‘s shares,then he may not be in a position to provide the external auditor with reliable, unbiased information.
- Duration of service. The external auditor should ascertain the duration the internal auditor has worked for the client company. If he has worked for long, he will be in a better position to provide relevant and reliable information to the external auditor
Wilfykil answered the question on February 22, 2019 at 12:23
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