Question

Which is NOT a source of evidence for an external auditor? 

a. work performed by internal auditors 

who organizationally report to the controller 

b. tests of controls 

c. substantive tests 

d. work performed by internal auditors who 

report to the audit committee of the BOD 

Answer 1

The correct answer is:

d. work performed by internal auditors who report to the audit committee of the BOD.

 

Explanation:

Internal auditors who report to the audit committee of the Board of Directors (BOD) are still internal to the organization. External auditors typically rely on evidence generated independently from within the organization to maintain objectivity and ensure unbiased evaluation. Therefore, work performed by internal auditors who report directly to the audit committee would not be considered an external source of evidence for an external auditor.

The correct answer is (d).