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Q6 Single choice

An internal audit charter, approved by the board, restricts the internal audit activity to providing assurance only on the reliability of financial information and the effectiveness of internal accounting controls. Which of

the following statements is true regarding the extent to which the external auditor may rely on the internal audit activity's work?

A
The external auditor may make full use of the work, as the audit charter is very specific as to the work the internal audit activity may undertake.
B
The external auditor may use the work, as the board has approved the charter, thus taking responsibility for any deficiencies.
C
The external auditor must disregard the work, as the scope of the charter may introduce bias and result in a lack of due professional care.
D
The external auditor may use the work with caution, due to the internal audit activity's scope and responsibility restrictions.

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