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

The statutory auditor of Himalaya Foods Ltd. plans to use the internal audit function's work and meets the chief internal auditor to coordinate. Which matter is listed in SA 610 (Revised) as useful to discuss in such coordination?

Proposed methods of item selection and sample sizes are listed in SA 610 (Revised) as a coordination topic between the external auditor and the internal audit function, alongside timing, nature, extent of coverage, materiality, documentation, and review and reporting procedures.

  1. AThe internal auditor's remuneration package
  2. BProposed methods of item selection and sample sizesCorrect
  3. CThe dividend policy for the year
  4. DThe choice of the company's bankers

Explanation

SA 610 (Revised) lists timing, nature of work, extent of coverage, materiality, proposed methods of item selection and sample sizes, documentation, and review and reporting procedures as discussion points. Remuneration, dividend policy and banker choice are unrelated to audit coordination.

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