C is corrent because independent auditor responsibility cannot be shared with the internal auditors for any judgments; the responsibility to report on the financial statements rests solely with the independent auditor.
A is incorrect because an independent auditor is responsible for the evaluation of accounting estimates.
B is incorrect because an independent auditor should not share responsibility for materiality judgments with the internal auditor.
D is incorrect because neither materiality judgments nor evaluation of accounting judgments should be shared with the internal auditor.
