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

The statutory auditor of Bharat Logistics Ltd plans to use internal audit work and meets the head of internal audit to coordinate. Which item is among the matters SA 610 (Revised) suggests may be useful to discuss?

Proposed methods of item selection and sample sizes are a suggested discussion item. SA 610 (Revised) lists timing, nature, extent of coverage, materiality, item selection and sample sizes, documentation, and review and reporting procedures as matters to coordinate with the internal audit function.

  1. AThe remuneration of internal audit staff
  2. BThe proposed methods of item selection and sample sizesCorrect
  3. CThe dividend policy of the company
  4. DThe tenure of the audit committee members

Explanation

The standard lists timing, nature of work, extent of coverage, materiality and performance materiality, proposed methods of item selection and sample sizes, documentation, and review and reporting procedures. Remuneration, dividend policy and committee tenure are not listed.

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