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CS Professional · Internal and Forensic Audit · Internal Audit Engagements and Planning

An external auditor of Himalaya Foods Ltd. uses internal auditors to provide direct assistance on the audit. Which item must the auditor include in the audit documentation?

The audit documentation must include the working papers prepared by the internal auditors who provided direct assistance, along with the evaluation of objectivity threats and competence, the basis for the work assigned, review details and the written agreements obtained.

  1. AOnly the final conclusions of the internal auditors, without their working papers
  2. BThe management's marketing plan for the year
  3. CThe working papers prepared by the internal auditors who provided direct assistanceCorrect
  4. DThe internal auditors' personal remuneration details

Explanation

SA 610 (Revised) requires documentation of threats to objectivity and competence evaluation, basis for nature and extent of work, who reviewed the work and when, written agreements, and the working papers prepared by the internal auditors giving direct assistance. Conclusions alone are insufficient.

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