In which of the following circumstances is an auditor most likely to rely on work done by internal auditors?
a. If financial statement amounts are material and the degree of subjectivity in evaluating the audit evidence is high
b. If the internal auditors have concluded that the risk of material misstatement at the overall financial level is negligible
c. For financial statement amounts judged by the auditor to require little or no subjectively evaluated audit evidence
d. For financial statement amounts determined largely or entirely on the basis of estimates made by management
Ans: c. For financial statement amounts judged by the auditor to require little or no subjectively evaluated audit evidence
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