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

Mr. Desai, statutory auditor of Anand Foods Ltd, wants to evaluate the quality of the work performed by the internal audit function, apart from reperformance. Which procedure is listed in SA 610 (Revised) for this purpose?

Reviewing the internal audit function's work program and working papers is a listed procedure. SA 610 (Revised) also mentions making inquiries of appropriate individuals within the function and observing procedures it performs, in addition to reperformance, to evaluate the quality of its work and conclusions.

  1. AReviewing the internal audit function's work program and working papersCorrect
  2. BObtaining a confirmation of dividend declared from shareholders
  3. CAppointing the internal auditor as the company's secretarial auditor
  4. DRelying on the management's oral assurance about the quality of work

Explanation

SA 610 (Revised) lists inquiries of appropriate individuals within the function, observing procedures performed, and reviewing the work program and working papers. Oral management assurance and the other options are not listed procedures.

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