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ISA 610 Using The Work of Int PDF

This document summarizes ISA 610, which provides guidance on using the work of internal auditors. It outlines three key areas: [1] Introduction to internal auditors and their role; [2] How external auditors can use the work of internal auditors; [3] How external auditors can obtain direct assistance from internal auditors. The document compares internal and external auditors and discusses factors like competence and objectivity that external auditors consider when determining if and how to use the work of internal auditors.

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Ali Haider
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195 views1 page

ISA 610 Using The Work of Int PDF

This document summarizes ISA 610, which provides guidance on using the work of internal auditors. It outlines three key areas: [1] Introduction to internal auditors and their role; [2] How external auditors can use the work of internal auditors; [3] How external auditors can obtain direct assistance from internal auditors. The document compares internal and external auditors and discusses factors like competence and objectivity that external auditors consider when determining if and how to use the work of internal auditors.

Uploaded by

Ali Haider
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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CFAP 06: Audit, Assurance and Related Services Scope of ISA 610:

ISA 610: Internal Auditor 1. Introduction to Internal Auditors & Their Role in an Entity.
Secret Sheet for Quick Revision 2. How to use work of internal auditor.
(By Muhammad Asif, FCA) 3. How to obtain Direct Assistance from Internal Auditor.

ISA 610: Using the Work of Internal Auditor

Introduction Using Work of Internal Audit Function

Activities of Internal Comparison b/w Whether to Use Work Nature and Extent of Work Using the Work
Audit Function Internal and (i.e. procedures to determine adequacy)
External Auditors

Competence Objectivity Systematic & Not to use if Use less work if more Can be used in Tests of
Governance Risk Internal Control Discip lined S ig n if i c an t judgment, high risk, low controls, Substantive Evaluate whether: Perform following procedures:
Management i. Independence Approach Ju d g m e n t s competence and procedures involving q Work was properly planned, performed, 1. Reperformance
ii. Appointment involved. objectivity limited judgment etc. documented and reviewed. 2. Inquire internal auditors
iii. Scope/Activities q Sufficient appropriate evidence obtained. 3. Observation
i. Evaluation (or monitoring) of iv. Reporting 4. Inspect working papers
q Conclusions are appropriate and reports
Internal Control are consistent with work performed.
ii. Examination of financial
information
iii. Review of operating activities
iv. Review of compliance with laws
and regulations

Direct Assistance

Whether to use Direct Assistance Nature and Extent of Work Using Direct Assistance

Not to use if: Not to use if: Obtain Agreements Direction, Supervision and Review
1. Prohibited by law. 1. Significant Judgments
2. Significant threats to objectivity involved.
3. Lacks sufficient competence 2. Risk of misstatement is high
3. Relates to decision regarding Authorized Internal ¨ Different and Extensive
Function and its work representat Auditor depending on risk, judgment,
ive of entity objectivity and competence
¨Review procedures will include
checking back some of work
performed.

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