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CS Professional · Internal and Forensic Audit · Internal Audit Engagements and Planning

Sunrise Textiles Ltd's external auditor plans to rely on the internal audit function's work. To judge whether that work is adequate, which procedure is listed among those the external auditor may perform, in addition to reperformance?

The external auditor may review the internal audit function's work program and working papers. SA 610 (Revised) lists this, along with inquiries and observation, as a way to evaluate the quality of internal audit work and its conclusions, beyond reperformance.

  1. AReviewing the internal audit function's work program and working papersCorrect
  2. BAsking the CFO to certify that the internal audit work is adequate
  3. CAccepting the internal audit report without further evaluation
  4. DReplacing the internal audit function's conclusions with management's estimates

Explanation

SA 610 (Revised) lists making inquiries of appropriate individuals within the internal audit function, observing its procedures, and reviewing its work program and working papers as procedures to evaluate the quality of its work. A management certificate or blind acceptance is not among these procedures.

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