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

Under SA 610 (Revised), which of the following is described as a possible activity of an internal audit function that its reports may cover?

SA 610 (Revised) says an internal audit function may be assigned to review the economy, efficiency and effectiveness of operating activities, including non-financial activities. The audit opinion and significant judgments such as assessing risks of material misstatement remain the external auditor's sole responsibility.

  1. AReviewing the economy, efficiency and effectiveness of operating activities, including non-financial activitiesCorrect
  2. BExpressing the audit opinion on the financial statements in place of the external auditor
  3. CDetermining materiality for the external auditor's financial statements audit
  4. DAssessing the risks of material misstatement on behalf of the external auditor

Explanation

SA 610 (Revised) lists review of operating activities, covering economy, efficiency and effectiveness including non-financial activities, as an internal audit function activity. The external auditor has sole responsibility for the opinion, and significant judgments such as assessing risks of material misstatement remain with the external auditor.

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