While planning an assurance engagement, the internal auditor obtains knowledge about the auditee’s operations to, among other things:
a. Develop an attitude of professional skepticism concerning management’s assertions.
b. Make constructive suggestions to management regarding internal control improvements.
c. Evaluate whether misstatements in the auditee’s performance
reports should be communicated to senior management and the audit committee.
d. Develop an understanding of the auditee’s objectives, risks, and controls.