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

Under SA 610 (Revised), the internal audit function's objectives and scope typically include assurance and consulting activities. Which activity is described there as part of the function's work relating to internal control?

SA 610 (Revised) says the internal audit function may be assigned to review compliance with laws, regulations and other external requirements, and with management policies and directives and other internal requirements. This is an internal control activity. Dividend policy, auditor fees and director appointments are not internal audit work.

  1. ASetting the entity's dividend policy
  2. BReviewing compliance with laws, regulations and other external requirements, and with management policies and directivesCorrect
  3. CApproving the external auditor's fees
  4. DAppointing the entity's directors

Explanation

The text lists evaluation of internal control, examination of financial and operating information, review of operating activities, and review of compliance with laws, regulations and other external requirements, and with management policies and directives. Dividend policy, auditor fees and director appointments are not internal audit activities.

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