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

Under SA 610 (Revised), which of the following is described as a significant judgment that the external auditor must make and cannot leave to the internal audit function?

Evaluating the adequacy of disclosures in the financial statements is a significant judgment the external auditor must make. SA 610 (Revised) explains the external auditor has sole responsibility for the opinion, so judgments like risk assessment, going concern and estimates cannot be delegated to internal auditors.

  1. APhotocopying supporting vouchers for sampling
  2. BEvaluating the adequacy of disclosures in the financial statementsCorrect
  3. CScheduling meetings with the internal audit head
  4. DFiling the signed engagement letter

Explanation

SA 610 (Revised) A19 lists significant judgments: assessing risks of material misstatement, evaluating sufficiency of tests, going concern assumption, significant accounting estimates, and adequacy of disclosures and other matters affecting the auditor's report. The other options are routine tasks, not significant judgments.

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