Using the Work of an Internal Audit (2) Flashcards
What does ISA 610 require?
External auditor to read reports of internal audit function relating to work the external auditor plans to use
What does ISA 610 obtain?
An understanding of nature and extent of audit procedures the internal audit function performed, as well as understanding the related findings
What must be done before using the work of internal audit?
External auditors need to evaluate and perform audit procedures on the entirety of work that they plan to use, to determine its adequacy for the purposes of the audit
Evaluation on internal audit (Properly planned performed)
Work was properly planned, performed, supervised, reviewed and documented
Evaluation on internal audit (appropriate evidence)
Whether sufficient appropriate evidence was obtained to allow internal auditors to draw reasonable conclusions
Evaluation on internal audit (conclusions)
Whether conclusions reached are appropriate in the circumstances
What does nature and extent of audit procedures performed on specific work of internal auditors depend on external auditor’s assessment of (judgement)
Amount of judgment involved
What does nature and extent of audit procedures performed on specific work of internal auditors depend on external auditor’s assessment of (risk)
Assessed risk of material misstatement
What does nature and extent of audit procedures performed on specific work of internal auditors depend on external auditor’s assessment of (objectivity internal auditors)
How well the audit function’s organisational status and relevant policies and procedures support objectivity of internal auditors
What does nature and extent of audit procedures performed on specific work of internal auditors depend on external auditor’s assessment of (competence)
Level of competence of the function
