Skip to content

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

Before relying on the internal audit function of Sundaram Foods Ltd, the external auditor meets the head of internal audit to coordinate. Which of the following is an item that SA 610 (Revised) suggests may be usefully addressed in the discussion?

Proposed methods of item selection and sample sizes are among the matters listed for discussion. The list also covers timing, nature of work, extent of coverage, materiality, documentation, and review and reporting procedures. Staff remuneration, dividend policy and auditor appointment are not coordination items.

  1. AProposed methods of item selection and sample sizesCorrect
  2. BThe remuneration of the internal audit staff
  3. CThe dividend policy of the company
  4. DThe selection of the company's statutory auditor for the next year

Explanation

The coordination list includes timing, nature of work, extent of coverage, materiality, proposed methods of item selection and sample sizes, documentation, and review and reporting procedures. Staff pay, dividend policy and auditor selection are not on the list.

Did you get it right without looking?

One question tells you little. A timed set on Internal Audit and Performance Audit shows your real accuracy, how long you take and where you lose marks.

Practise Internal Audit and Performance AuditFree diagnostic mock

More Internal Audit and Performance Audit questions