Page 196 - Internal Auditing Standards

Guide to Using International Standards on Auditing in the Audits of Small- and Medium-Sized Entities Volume 1—Core Concepts

Summarized Extracts from the Requirements Section
Documentation The group engagement team shall include in the audit documentation the following matters:
600.50
• An analysis of components, indicating those that are significant, and the type of

work performed on the financial information of the components;

• The nature, timing, and extent of the group engagement team’s involvement in the

work performed by the component auditors on significant components, including,
where applicable, the group engagement team’s review of relevant parts of the
component auditors’ audit documentation and conclusions thereon; and
• Written communications between the group engagement team and the
component auditors about the group engagement team’s requirements.

15.7 ISA 610 — Using the Work of Internal Auditors

Paragraph # ISA Objective(s)

610.6 The objectives of the external auditor, where the entity has an internal audit function that the
external auditor has determined is likely to be relevant to the audit, are:

(a) To determine whether, and to what extent, to use specific work of the internal auditors;
and

(b) If using the specific work of the internal auditors, to determine whether that work is
adequate for the purposes of the audit.

Exhibit 15.7-1

Determine planned effect
Will work of Internal Yes of IA work on nature,
Audit (IA) be adequate timing, or extent of
for audit purposes? external auditor’s
procedures.

No

Perform audit procedures
Stop on IA work to evaluate
its adequacy for external
auditor use.

Document
conclusions reached.

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