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

Kaveri Pharma Ltd appointed a firm of chartered accountants as internal auditor. The statutory auditor, Mr. Rao, plans to use its work and wishes to coordinate with the internal audit function. Which of the following is among the matters SA 610 (Revised) says it may be useful to discuss?

Proposed methods of item selection and sample sizes are among the matters SA 610 (Revised) says may usefully be discussed with the internal audit function. Others include timing, nature, extent of coverage, materiality, documentation, and review and reporting procedures. Dividend or remuneration matters are unrelated to audit coordination.

  1. AThe remuneration of the company's directors
  2. BProposed methods of item selection and sample sizesCorrect
  3. CThe dividend policy of the company for the next three years
  4. DThe choice of the company's bankers for the year

Explanation

The standard lists timing, nature, extent of coverage, materiality, proposed methods of item selection and sample sizes, documentation, and review and reporting procedures as matters for coordination. Director remuneration, dividend policy and bankers are not on that list.

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