Skip to content

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

Godavari Pharma's external auditor finds the internal audit function objective and competent, but its work programmes and review procedures are not applied consistently, so risks to work quality are too significant. What does SA 610 (Revised) permit the auditor to do?

The auditor should not use any of the function's work as audit evidence. SA 610 (Revised) prohibits use where the function lacks a systematic and disciplined approach including quality control, and notes that quality risks may be too significant to use any of its work, despite objectivity and competence.

  1. AUse the work for audit evidence, but perform extra sampling
  2. BUse the work after obtaining management's written approval
  3. CUse only the function's reports to the board as audit evidence
  4. DNot use any of the function's work as audit evidenceCorrect

Explanation

Para 16(c) bars use where the function does not apply a systematic and disciplined approach, including quality control. The guidance on circumstances when work cannot be used adds that risks to work quality may be too significant, so it is not appropriate to use any of the work as audit evidence. Objectivity and competence do not override this.

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