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

Kaveri Pharma Ltd's statutory auditor, CA Rohan Mehta, is assessing whether the company's internal audit function applies a systematic and disciplined approach. Which factor is relevant to this assessment under SA 610 (Revised)?

The relevant factor is whether documented internal audit procedures or guidance exist and are used, covering risk assessments, work programs, documentation and reporting, in proportion to the entity's size. Quality control policies also matter. Committee membership, setup timing and fee comparison are not factors in the standard.

  1. AWhether documented internal audit procedures cover risk assessments, work programs, documentation and reporting, commensurate with the entity's sizeCorrect
  2. BWhether the internal audit head is a member of the audit committee
  3. CWhether the internal audit function was set up before the statutory auditor was appointed
  4. DWhether the internal audit fee is lower than the statutory audit fee

Explanation

The text lists the existence, adequacy and use of documented procedures covering risk assessments, work programs, documentation and reporting, commensurate with size and circumstances, along with quality control policies. The other options are not named factors.

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