Question

In determining the extent to which the auditor may use the work of others in the audit of ICFR, the auditor should do all of the following except:

A) be ready to document the extent to which he or she relied on the work.

B) evaluate the risks associated with the controls subjected to the work of others.

C) evaluate the competence and objectivity of the individuals who performed the work.

D) All of these are required.

Answer 1

In an audit of ICFR, the auditor should evaluate the risks and the competence & objectivity of the individuals' work but is not required to document the extent to which they rely on the work of others.

Step-by-step explanation:

In determining the extent to which the auditor may use the work of others in the audit of Internal Control over Financial Reporting (ICFR), the auditor should not be ready to document the extent to which he or she relied on the work of others. Instead, the auditor is expected to:

• Evaluate the risks associated with the controls subjected to the work of others.
• Evaluate the competence and objectivity of the individuals who performed the work.

The auditor must assess the quality of the work performed by others to ensure it meets the rigorous standards required in an audit. This evaluation helps in determining the level of reliance on such work. However, it is not the auditor's responsibility to document the extent of reliance as an option but rather as a necessity if they choose to rely on the work of others.