American Institute of Certified Public Accountants (AICPA) Practice Exam

The determination that a CPA firm is not responsible for directing a client's internal audit function is grounded in the distinct roles and responsibilities outlined for external audit firms and internal auditors. The primary role of a CPA firm, when engaged for an audit, is to provide an independent assessment of the financial statements prepared by the client organization. The responsibility for managing and directing the internal audit function lies with the client's management and internal audit team.

A CPA firm may assist in evaluating or providing support to the internal audit function, but they do not take on the responsibility of directing it. This separation of duties is crucial to maintaining the independence of the external audit process. By ensuring that the CPA firm does not direct the internal audit, it avoids any potential conflicts of interest that could impair the objectivity needed for auditing the financial statements.

Therefore, stating that the CPA firm is responsible for directing the internal audit function is inaccurate. This understanding helps clarify the boundaries and ensures that the roles are appropriate, reinforcing the integrity of the audit process.