ASA 610 - Considering the Work of Internal Audit - April 2006
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Introduction
4 The purpose of this Auditing Standard is to establish mandatory requirements and to provide explanatory guidance to external auditors in considering the work of internal audit. This Auditing Standard does not deal with instances when personnel from internal audit assist the external auditor in carrying out external audit procedures. The audit procedures noted in this Auditing Standard are ordinarily only applied to internal audit activities which are relevant to the audit of the financial report.
5 The external auditor shall consider the activities of internal audit and their effect, if any, on external audit procedures.
6 “Internal audit” means an appraisal activity established within an entity as a service to the entity. Its functions include, amongst other things, monitoring internal control.
7 While the external auditor has sole responsibility for the audit opinion expressed and for determining the nature, timing and extent of external audit procedures, certain parts of internal audit work may be useful to the external auditor.