ACCA Advanced Audit and Assurance (AAA) Practice Exam

What does direct assistance involve in an audit context?

1. Internal auditors conducting audits independently

2. External auditors supervising internal auditors during procedures

3. External auditors performing all audit tasks alone

4. Internal auditors handling client relationships

The correct answer is: External auditors supervising internal auditors during procedures

Direct assistance in an audit context refers to the scenario where external auditors utilize the work of internal auditors under their supervision. This involves the external auditors overseeing and guiding the internal auditors while they perform specific audit procedures. By providing direct assistance, the external auditors can ensure that the internal auditors' work adheres to the necessary standards of quality and thoroughness required for the audit. This approach allows external auditors to leverage the knowledge and insights that internal auditors have about the company, thus enhancing the efficiency of the audit process. However, it is important for external auditors to maintain a level of supervision to preserve the integrity and objectivity of the audit, ensuring that the opinions they form are based on adequate evidence. The other options do not fit the definition of direct assistance. For instance, internal auditors conducting audits independently would not involve external auditors supervising their work, which is a key component of direct assistance. Similarly, if external auditors were to perform all audit tasks alone, this would eliminate the concept of utilizing internal auditors altogether. Lastly, while internal auditors managing client relationships is relevant to their role, it does not pertain to the concept of direct assistance in the context of audit procedures.