Guide to Using International Standards on Auditing in - IFAC

194
<strong>Guide</strong> <strong>to</strong> <strong>Using</strong> <strong>International</strong> <strong>Standards</strong> on Auditing in the Audits of Small- and Medium-Sized Entities Volume 1—Core Concepts
Documentation
600.50
Summarized Extracts from the Requirements Section
The group engagement team shall include in the audit documentation the following matters:
• An analysis of components, indicating those that are significant, and the type of
work performed on the financial information of the components;
• The nature, timing, and extent of the group engagement team’s involvement in the
work performed by the component audi<strong>to</strong>rs on significant components, including,
where applicable, the group engagement team’s review of relevant parts of the
component audi<strong>to</strong>rs’ audit documentation and conclusions thereon; and
• Written communications between the group engagement team and the
component audi<strong>to</strong>rs about the group engagement team’s requirements.
15.7 ISA 610 — <strong>Using</strong> the Work of Internal Audi<strong>to</strong>rs
Paragraph #
ISA Objective(s)
610.6 The objectives of the external audi<strong>to</strong>r, where the entity has an internal audit function that the
external audi<strong>to</strong>r has determined is likely <strong>to</strong> be relevant <strong>to</strong> the audit, are:
(a) To determine whether, and <strong>to</strong> what extent, <strong>to</strong> use specific work of the internal audi<strong>to</strong>rs;
and
(b) If using the specific work of the internal audi<strong>to</strong>rs, <strong>to</strong> determine whether that work is
adequate for the purposes of the audit.
Exhibit 15.7-1
Will work of Internal
Audit (IA) be adequate
for audit purposes?
Yes
Determine planned effect
of IA work on nature,
timing, or extent of
external audi<strong>to</strong>r’s
procedures.
No
S<strong>to</strong>p
Perform audit procedures
on IA work <strong>to</strong> evaluate
its adequacy for external
audi<strong>to</strong>r use.
Document
conclusions reached.