Circumstances in which it would not be possible to rely on the work of internal audit
(i) It may not be possible to rely on the work of internal auditors if they:
– Are not competent (this relates to experience as well as qualifications);
– Lack integrity;
– Do not properly plan or document their work, or if management does not act on (or at least respond to) recommendations made;
– Do not perform work relevant to the external auditor.
(ii) It will also not be possible to rely on internal audit if internal audit is insufficiently independent within the organization, i.e. where internal auditors have insufficient operational freedom, where they are reporting to those who control the functions that they work on, or where they are reporting on their own work.