23.03.2012: International Standard on Auditing (ISA) 610 (Revised); Using the Work of Internal Auditors

The revised ISA 610 “Using the Work of Internal Auditors” deals with the external auditor’s responsibilities if using the work of an internal audit function in obtaining audit evidence. Related changes have also been made to ISA 315 (Revised) “Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment”, to explain how the internal audit function and its findings can usefully inform the external auditor’s risk assessments. The Basis for Conclusions explains the IAASB’s deliberations in revising ISA 610 and ISA 315.

The IAASB has concluded its deliberations on requirements and guidance regarding the external auditor’s use of the work of internal auditors to provide direct assistance during the audit. The IAASB intends to incorporate this material in ISA 610 (Revised) after the International Ethics Standards Board for Accountants (IESBA) concludes its deliberations on its February 2012exposure draft of proposed changes to the definition of “engagement team” in the Code of Ethics for Professional Accountants (the IESBA Code). The IESBA exposure draft proposes to resolve a possible conflict between the ISAs and the IESBA Code regarding the ability of external auditors to use direct assistance. The IAASB anticipates releasing the part of ISA 610 (Revised) relating to the use of direct assistance by the end of 2012.

Source: IAASB