Skylark Real Estate Ltd. is a company offering estate agency services to the public through a network of branches all over the country. The company has some 300 staff in all. The board consists of six people, a parttime chairman, a chief executive, two other full time executives and two representatives of the owners. The company is jointly owned by a foreign bank and the City Property Group. The company has an internal audit department consisting of Sanjeev who is a young chartered accountant and Rajeev who is an accounting expert.
They have also a secretary, Ritwika. They report their activities monthly in detail to the board and to the audit committees of the foreign bank and the City Property Group.

Discussion 

a. What work would the internal audit department do?
b. In what ways may the external auditors place reliance on their work?
c. Draw up a checklist, which the external auditor could use to assess the internal auditors as potentially being capable of producing work on which the external auditors may rely.