Emerald Ltd Maintains a Large, Full-Time Internal Audit Staff That

Multiple Choice

Emerald Ltd maintains a large, full-time internal audit staff that reports directly to the chief accountant.Audit reports prepared by the internal auditors indicate that the structure is functioning as it should be and that the accounting records are reliable.The external auditor will probably:

A) eliminate tests of controls.
B) increase the depth of the procedures to obtain an understanding of controls directed towards operating efficiency.
C) avoid duplicating the work performed by the internal audit staff.
D) place limited reliance on the work performed by the internal audit staff.