ACCA Advanced Audit and Assurance (AAA) Practice Exam

In what circumstance would an auditor utilize direct assistance?

1. During inventory assessments only

2. When performing audits alone without internal auditors

3. In the presence of internal auditors under external audit supervision

4. When assessing external service organizations

The correct answer is: In the presence of internal auditors under external audit supervision

An auditor would utilize direct assistance when there are internal auditors present, provided that the external auditor maintains supervision over their work. This circumstance is significant because it allows the external auditor to leverage the resources and knowledge of the internal audit team to enhance the overall efficiency and effectiveness of the audit process. In this scenario, the external auditor can direct and oversee the internal auditors' activities to ensure that the work aligns with the audit objectives. This collaboration can help in gathering evidence more efficiently and can add value to the audit by providing insights that the external auditor may not have. The external auditor is still responsible for the overall audit opinion, so maintaining supervision is critical to ensure that the internal auditors' work meets the required standards. The other options do not represent typical circumstances for utilizing direct assistance. Conducting inventory assessments alone does not justify direct assistance as it limits the broader context of collaboration with internal auditors. Performing audits without internal auditors does not involve any assistance at all, and assessing external service organizations typically follows established protocols where direct assistance may not be a relevant factor.