- 10 Marks
AAA – May 2021 – L3 – Q1b – The audit approach | Internal audit and outsourcing
Draft a report on the factors influencing the external auditor’s reliance on the work of internal auditors according to ISA 610.
Question
Your audit client, Asuoyeboa Ltd, has recently hired an Internal Auditor to deal with increased regulatory requirements. Afrakoma, the CEO of Asuoyeboa Ltd, has indicated that she believes the presence of the Internal Auditor will dramatically reduce the work that your audit firm will have to perform. She anticipates that this will have an impact on the audit fee.
Required:
Draft a report indicating factors that will influence the extent to which the external auditors will rely on the Internal Auditors’ work as per the requirements imposed by ISA 610: Using the Work of Internal Auditors. (10 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Audit Fees, Audit Reliance, External audit, Internal Audit, ISA 610
- Level: Level 3
- Topic: Internal audit and outsourcing, The audit approach
- Series: MAY 2021
Report an error