The internal audit department of Kirat Foods Ltd. has tested inventory controls, and the statutory auditor decides to use this work under SA 610. Which statement is correct?

Correct answer: A) The external auditor retains sole responsibility for the audit opinion, which is not reduced by the use of the internal auditors' work

Explanation

SA 610 makes clear that the external auditor has sole responsibility for the audit opinion, and this is not reduced by using the internal audit function's work. The auditor must first evaluate the function's objectivity, competence and systematic and disciplined approach. The auditor's report does not refer to the internal auditors' work.