CAF-8 · Chapter 12 · Question 2 of 10
Which of the following tasks is considered too high-risk for the external auditor to delegate to internal auditors as 'Direct Assistance'?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Assessing the risk of material misstatement at the financial statement level and making significant professional judgments.
Explanation
External auditors must perform the core judgmental and risk-assessment tasks themselves. Direct assistance is typically limited to lower-risk, more procedural testing.
More Reliance on Others MCQs
- Q4Before relying on the work of a specialized property valuer (Auditor's Expert), the auditor must evaluate:
- Q5What is the external auditor's responsibility for the final audit opinion when they have used the work of an expert or internal auditors?
- Q6If an auditor uses a 'Service Organization' (e.g., an external company that processes the client's payroll), which ISA applies?
- Q7A 'Type 2 Report' from a service organization's auditor provides evidence regarding:
- Q8Which of the following is an indicator of LOW 'Objectivity' for a client's internal audit department?