Wiley Practitioner's Guide to GAAS 2020

28AU-C 610 Using the Work of Internal Auditors

Scope

Objectives of AU-C Section 610

Definitions of Terms

Overview

Requirements

Uses of the Internal Audit Function

Determining Whether the Internal Audit Function Can Be Used to Obtain Evidence

Procedures When Using the Internal Audit Function

Determining Whether Internal Audit Can Be Used to Provide Direct Assistance

Determining the Nature and Extent of Work That Can Be Assigned to Internal Auditors Providing Direct Assistance

Communicating with Those Charged with Governance Regarding Internal Auditors Providing Direct Assistance

Managing the Internal Audit Function When It Is Providing Direct Assistance

Evaluating and Testing Effectiveness of Internal Auditors’ Work

Procedures for Evaluating the Work Performed by Internal Audit

Documentation

AU-C 610 Illustrations

Illustration 1. Obtaining an Understanding of the Internal Audit Function

Illustration 2. Checklist for Using Work of Internal Auditors

SCOPE

AU-C 610 addresses the external auditor’s responsibilities if using the work of internal auditors. The external auditor may use internal audit to:

• Obtain audit evidence.
• Provide direct assistance under the direction, supervision, and review of the external auditor.

• (AU-C 610.01)

AU-C 610’s requirements are, for the most part, organized around those two uses.

AU-C 610 does not apply if:

• The entity does not have an internal audit function,
• The internal audit function is not relevant to the audit, or
• The external auditor ...