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

Before relying on the work of Rohini Cements Ltd's internal audit function, the statutory auditor meets the head of internal audit to coordinate. Which item is listed in SA 610 (Revised) as a useful matter to address in this discussion?

Proposed methods of item selection and sample sizes is a listed coordination matter. SA 610 (Revised) also lists timing, nature and extent of work, materiality, documentation, and review and reporting procedures. Staff remuneration, dividend policy and director appointments are not matters for coordinating the audit work.

  1. AThe remuneration payable to the internal audit staff
  2. BProposed methods of item selection and sample sizesCorrect
  3. CThe dividend policy of the company
  4. DThe appointment of the company's directors

Explanation

SA 610 (Revised) lists matters for coordination: 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. Staff pay, dividend policy and director appointment are not on the list.

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