The role and function of internal auditors are different from the external auditors. However, they often work together on various matters. The external auditors have an obligation to adhere to rules of code of ethics as set out in the professional conduct.

Required:

(a) (i) In the auditing of the financial statements of a Limited Liability Company contrast the objectives and scope of an internal auditor's work with that of an external auditor. 

(ii) Fraud should be detected by the internal and external auditors. Discuss this statement.

(b) When the external auditors are evaluating and testing work carried out by internal auditors, Explain four matters that should be considered in deciding if they can rely on the internal auditors' work, to reduce their own work. 

(c) Discuss the FOUR (4) fundamental principles of the AICPA Code of Professional Conduct. 

Answer rating: 100% (QA)

a i The objectives and scope of work of internal auditors and external auditors in the auditing of financial statements of a Limited Liability Company differ in various ways Internal auditors are empl... View the full answer