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

Before relying on the internal audit work at Bharat Steels Ltd, the statutory auditor plans a meeting with the internal audit head to coordinate. Which item is suggested in SA 610 (Revised) as useful to address in that discussion?

The auditor should discuss proposed methods of item selection and sample sizes. SA 610 (Revised) also lists timing, nature, extent of coverage, materiality, documentation and review and reporting procedures. Staff pay, dividend policy and bank choice are unrelated to coordinating the work.

  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 choice of the company's bankers

Explanation

The text lists timing, nature of work, extent of coverage, materiality and performance materiality, methods of item selection and sample sizes, documentation, and review and reporting procedures. Remuneration, dividend policy and bankers are not listed.

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