Answer (C) is correct . In coordinating the work of internal auditors with the work of external auditors, the CAE should ensure that work to be performed by internal auditors does not duplicate the work of external auditors that can be relied upon for purposes of internal auditing coverage. To the extent that professional and organizational reporting responsibilities allow, internal auditors should perform services in a manner that allows for maximum coordination and efficiency (PA 2050-1).
Answer (A) is incorrect because Duplication of effort may result if the external audit is performed after the internal auditing engagement.
Answer (B) is incorrect because Internal auditing encompasses both financial and operational objectives and activities. Thus, internal auditing coverage could also be provided by external audit work that included primarily financial objectives and activities.
Answer (D) is incorrect because External auditing work is conducted in accordance with auditing standards generally accepted in the host country.
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