Using the Work of Internal Auditors

Status: Monitoring the IAASB’s activities regarding proposed revisions to ISA 610. 

Objective and Scope of this Project
Background
Issues
Activities to Date
Next Steps
Related Information
Contact Information

Objective and Scope of this Project

The objective of this project is to revise Canadian Auditing Standard (CAS) 610, Using the Work of Internal Auditors, to reflect developments in the internal auditing environment and changes in practice regarding the interactions between the external and internal auditors.

The planned scope of this project encompasses matters related to using internal audit staff to provide direct assistance to the external auditor.  This matter is not addressed in extant CAS 610.  

Background

The extant International Standard on Auditing (ISA) 610, Considering the Work of Internal Audit, was last revised in March 1994. As part of the IAASB’s Clarity project, this ISA was redrafted for conformity with the Clarity drafting conventions.  The IAASB issued ISA 610 (Redrafted) in October 2008. The AASB adopted ISA 610 (Redrafted) as CAS 610 effective for all financial statements audits for periods ending on or after December 14, 2010.

The AASB is committed to adopting the ISAs.  Accordingly, revisions that the IAASB makes to ISA 610 will be reflected in CAS 610.  Amendments, if any, that the AASB would make to the ISA wording would be in accordance with the AASB’s criteria for such amendments, as set out in Appendix 1 of the Preface to the CICA Handbook – Assurance.

At each stage of review of the IAASB material, the AASB provides input to the IAASB member nominated by the CICA regarding the international standard on auditing project for discussion at the upcoming IAASB meeting.

Issues

During the redrafting of the extant ISA 610 a number of respondents drew the IAASB’s attention to the need to revise this ISA to better reflect the current internal auditing environment. The IAASB approved a project proposal to revise ISA 610 at its March 2009 meeting.

In revising ISA 610, the IAASB is seeking to codify improved practices that have developed since ISA 610 was last revised. Key matters to be addressed by the project include:

• the role of internal auditing in the external auditor’s risk assessments;
• whether, and to what extent, external auditors should:

  —	use the work of the internal auditors; and
  —	engage the direct assistance of internal auditors,

• the manner in which external auditors should interact with internal auditors during the audit.
     

Further information on the IAASB’s project is available on the IAASB project summary.

Activities to Date

In September 2011, the AASB discussed matters related to the IAASB project to revise ISA 610, Using the Work of Internal Auditors, and related proposed changes to certain paragraphs in ISA 315, Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment.

In June 2011, the AASB discussed matters related to the IAASB project to revise ISA 610 and related proposed changes to certain paragraphs in ISA 315.

In March 2011, the AASB discussed matters related to the IAASB project to revise ISA 610 and related proposed changes to certain paragraphs in ISA 315.

In October 2010, the AASB reviewed responses to an Exposure Draft (ED) of revised Canadian Auditing Standard (CAS) 610, and formulated a response letter to the IAASB.

In August 2010, the AASB approved an ED of proposed CAS 610 (Revised).

In June 2010, the AASB reviewed analyses of issues pertaining to a draft ED of revised International Standard on Auditing (ISA) 610.

In March 2010, the AASB reviewed analyses of issues pertaining to the first draft of a revised ISA 610.

In September 2009, the AASB reviewed analyses of issues pertaining to the revision of ISA 610.

In March 2009, the AASB reviewed the project proposal to revise ISA 610.

IAASB’s Discussions to Date
Background papers that are the basis of the IAASB’s discussions, along with meeting summaries and audio recordings of the actual discussions, can be accessed on the IAASB’s website by clicking here and then on the date of the meeting at which matters pertaining to a project were discussed.

Next Steps

The following summarizes the AASB’s planned activities:

Related Information

• The AASB’s official response to the IAASB’s Exposure Draft is available here
• Responses to the AASB on its Exposure Draft are available here.
• Exposure Draft, Using the Work of Internal Auditors

Contact Information

Staff contact: Svetlana Berger, CA
Telephone no.: +1 (416) 204 3231