AUD Internal Audit · Updated November 2026
Can the External Auditor Rely on Internal Audit?
Evaluate the internal audit function first, then decide whether and how its work can affect external audit procedures.
Objectivity
Consider whether internal audit can perform its work without inappropriate bias or influence.
Competence
Consider training, experience, professional qualifications, and technical ability.
Systematic approach
The internal audit function should use an organized, disciplined, quality-controlled approach.
Nature of the work
Higher-risk or highly judgmental areas generally require greater external-auditor involvement.
Responsibility
Using internal audit work does not transfer responsibility for the external audit opinion.
The takeaway
Use internal audit only after evaluating the function, and keep external-auditor responsibility clear.
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FAQ
Does strong internal audit eliminate external testing?
No.
Does the external auditor remain responsible for the opinion?
Yes.
Are highly judgmental areas ideal for heavy reliance?
Generally no.