External Audit: Using the work of Internal Auditor

The circumstances external auditor shall not use the assistance of internal auditor:

To Perform procedures that:

• Involve making of significant judgments in the audit.
• Relate to higher assessed risks of material mistatement.
• Relate to work with which the internal auditors have been involved.
• Realte to decisions regarding the internal audit function.

 

Audit Documentation - When using the internal auditors to provide direct assistance:

The auditor shall include in the audit documentation:

1. The evaluaton of the existance and significance of threats to the objectivity of the internal auditors.
2. Evaluation of the level of competence of the internal auditors used to provide direct assistance.
3. The basis for the decision regarding the nature and entent of the work performed by the internal auditors.
4. Who reviewed the work performed and the date and extent of that review in accordance with ISA230: Audit Documentation.

(Note: The author is the partner of AK & Partners Auditors and Chartered Accountants, an auditing firm in qatar)