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ACCA Strategic Professional · Advanced Audit and Assurance (International) · Using the work of others

During the audit of Nordvik Retail, the auditor plans to use internal audit's testing of inventory counts at 12 stores. Having concluded the function is adequately objective and competent, which procedure must the auditor perform on the specific work to be used?

The auditor must evaluate whether the internal audit work was properly planned, performed, supervised, reviewed and documented, and must test it, typically by re-performing a sample. Re-performing everything is unnecessary, and relying on management confirmation or a signature alone would not provide adequate audit evidence.

  1. ARe-perform all of the internal auditors' tests
  2. BEvaluate whether the work was properly planned, performed, supervised, reviewed and documented, and re-perform a sample of itCorrect
  3. CObtain written confirmation from management that the internal audit work is reliable
  4. DAccept the conclusions if internal audit's report is signed by the head of internal audit

Explanation

ISA 610 requires the auditor to evaluate adequacy of the specific work for the auditor's purposes, including whether it was properly planned, performed, supervised, reviewed and documented, whether evidence is sufficient and appropriate, and whether conclusions are appropriate. The auditor must also perform audit procedures on the work, such as re-performance of a sample. Re-performing everything defeats the purpose of using the work.

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