CAF-8 · Chapter 12 · Question 1 of 10
Under ISA 610, when can the external auditor use the work of the 'Internal Audit Function'?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Only if the internal audit function is sufficiently objective, competent, and applies a systematic and disciplined approach.
Explanation
ISA 610 permits reliance but requires the external auditor to first evaluate the internal audit function's quality, competence, and organizational status (objectivity).
More Reliance on Others MCQs
- Q3According to ISA 620, what is the definition of an 'Auditor's Expert'?
- Q4Before relying on the work of a specialized property valuer (Auditor's Expert), the auditor must evaluate:
- Q5What is the external auditor's responsibility for the final audit opinion when they have used the work of an expert or internal auditors?
- Q6If an auditor uses a 'Service Organization' (e.g., an external company that processes the client's payroll), which ISA applies?
- Q7A 'Type 2 Report' from a service organization's auditor provides evidence regarding: