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CS Professional · Internal and Forensic Audit · Reporting under Internal Audit

Kaveri Pharma's statutory auditor and internal audit head are planning coordination. Which of the following is, per SA 610 (Revised), a matter that may usefully be discussed for coordinating their respective activities?

Review and reporting procedures are among the matters that may usefully be discussed between the external auditor and internal audit function when coordinating activities. Others include timing, nature, extent of coverage, materiality, sample sizes and documentation. Remuneration or dividend policy are unrelated to coordination.

  1. AReview and reporting proceduresCorrect
  2. BThe remuneration of the internal audit head
  3. CThe dividend policy of the company
  4. DThe choice of the company's bankers

Explanation

The listed discussion points include timing, nature of work, extent of coverage, materiality, item selection and sample sizes, documentation, and review and reporting procedures. Remuneration, dividend policy and bankers are not among them.

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