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CS Professional · Compliance Management, Audit and Due Diligence · Internal Audit and Performance Audit

At Narmada Foods Ltd, the external auditor wants to plan coordination with the internal audit function before relying on its work. Which of the following is a matter SA 610 (Revised) suggests may usefully be discussed?

The external auditor may usefully discuss proposed methods of item selection and sample sizes. SA 610 (Revised) also lists timing, nature of work, extent of coverage, materiality, documentation, and review and reporting procedures as coordination topics. Remuneration, dividend policy and successor auditor are not among them.

  1. AThe remuneration of the internal audit head
  2. BThe proposed methods of item selection and sample sizesCorrect
  3. CThe dividend policy of the company
  4. DThe selection of the statutory auditor's successor

Explanation

The guidance on discussion and coordination lists timing, nature of work, extent of coverage, materiality and performance materiality, proposed methods of item selection and sample sizes, documentation, and review and reporting procedures. The other options are not in that list.

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