Scope of this Auditing Standard (Ref: PaScope of this Auditing Standard (Ref: Para. 1)

Scope of this Auditing Standard (Ref: Para. 1)

1. As described in ASA 315,[3] the entity’s internal audit function is likely to be relevant to the audit if the nature of the internal audit function’s responsibilities and activities are related to the entity’s financial reporting, and the auditor expects to use the work of the internal auditors to modify the nature or timing, or reduce the extent, of audit procedures to be performed.
2. Carrying out procedures in accordance with this Auditing Standard may cause the external auditor to re-evaluate the external auditor’s assessment of the risks of material misstatement. Consequently, this may affect the external auditor’s determination of the relevance of the internal audit function to the audit. Similarly, the external auditor may decide not to otherwise use the work of the internal auditors to affect the nature, timing or extent of the external auditor’s procedures. In such circumstances, the external auditor’s further application of this Auditing Standard may not be necessary.