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

Under SA 610 (Revised), which of the following is a significant judgment that the external auditor must make personally rather than leave to internal auditors?

Assessing the risks of material misstatement is a significant judgment the external auditor must make, since the external auditor alone is responsible for the audit opinion. Others include evaluating sufficiency of tests, going concern use, significant estimates and adequacy of disclosures.

  1. AAssessing the risks of material misstatementCorrect
  2. BFiling the physical audit working papers
  3. CScheduling meetings with the client's staff
  4. DPhotocopying confirmation replies

Explanation

Because the external auditor has sole responsibility for the opinion, significant judgments such as assessing risks of material misstatement, evaluating sufficiency of tests, going concern appropriateness, significant estimates and adequacy of disclosures remain with the external auditor. The other options are routine tasks, not significant judgments.

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