Internal auditing is a staff function found in virtually every large corporation. The internal audit function is also performed in many smaller companies as a part-time activity of individuals who may or may not be called “internal auditors.” The differences between the audits by independent auditors and the work of internal auditors are more basic than is generally recognized.
a. Briefly discuss the auditing work performed by the independent public accountant and the internal auditor with regard to:
(1) Auditing objectives.
(2) General nature of auditing work.
b. In conducting their audit, the independent auditors may consider the work of the internal auditors. Discuss briefly the reason for this consideration.