[watermelon]

I am confused by the “assessment of risk” in Using the work of Others in AUD
1. For which of the following judgments may an independent auditor share responsibility with an entity’s internal auditor who is assessed to be both competent and objective?
Answer is: Assessment of Inherent Risk (no) Assessment of Control Risk (no)
2. The work of internal auditors may affect the independent auditor’s:
I.Procedures performed in obtaining an understanding of internal control.
II.Procedures performed in assessing the risk of material misstatement.
III.Substantive procedures performed in gathering direct evidence.
Answer is all of them.

in Becker, it says the independent external auditor cannot share with the internal auditor any of the responsibility for audit decisions, judgements, or ASSESSMENTS made as part of the audit.
It also says the work of an internal auditor may aid the external auditor in obtaining an understanding of internal control, ASSESSING risk and performing substantive procedures.
I am confused by the assessments in both scenarios. can anyone help pls?

[jdurham1994]

Hello again!

In this question, I think you are just looking at it a little wrong. The internal auditor can not have any relations to ASSESSING the risk. They cannot do that at all. However, their work may in return help the independent auditor ASSESS risk himself.

So for the second question Part II, it basically says “the work of the internal auditor may affect the independent auditor's procedures performed in assessing the rmm” That is not saying that the internal auditor is assessing any risk, just their work may affect how the independent auditor assesses it.

Hopefully I did not make this too confusing and you understanding what I am trying to say. Please let me know if I made it worse or if you understand what I'm saying.

[watermelon]

yes!! it makes sense to me now! Internal auditor doesn't do the assessment themselves, but their work helps independent auditor to assess the risk. thank you so much James! I am sure i will need more help before my test haha

[jdurham1994]

No worries, my audit exam is on the 3rd, so any time I am helping you I am also helping myself haha

[watermelon]

I am sure you will do great! 🙂 good luck!!

[Author]

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