Assume That the External Auditor Decides That Because of Work

Multiple Choice

Assume that the external auditor decides that because of work performed by internal auditors, the audit risk has been reduced to an acceptable level. As a result of this assessment, the auditor can do which of the following?

A) The auditor must test the assertions directly and document a separate conclusion.
B) The auditor can decide that direct testing is not necessary.
C) The auditor must delegate the responsibility of expressing an opinion to the internal auditors.
D) The auditor can assume that inherent risk is zero.