CS Professional · Internal and Forensic Audit · Reporting under Internal Audit
The statutory auditor of Ganga Steels Ltd wishes to rely on the company's internal audit reports, and evaluates the function under SA 610 (Revised). Which set of matters must the external auditor evaluate to decide whether the work can be used?
The external auditor must evaluate objectivity, supported by organisational status and relevant policies and procedures; the level of competence; and whether the function applies a systematic and disciplined approach, including quality control. Title or in-house status alone does not decide, and the external auditor retains sole responsibility for the opinion.
- ASize of the internal audit report and number of findings raised
- BObjectivity supported by organisational status and policies, competence, and a systematic and disciplined approach including quality controlCorrect
- CTitle of the function and whether it is in-house or outsourced
- DWhether the internal audit function agrees to take responsibility for the audit opinion
Explanation
SA 610 (Revised) requires evaluation of objectivity (organisational status and relevant policies and procedures), the level of competence, and whether a systematic and disciplined approach, including quality control, is applied. The title or in-house status is not a sole determinant. The external auditor keeps sole responsibility for the opinion.
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