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