SA610 – USING INTERNAL AUDITOR FOR INVENTORY COUNT

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Yash asked 3 years ago

Can statutory auditor use work of internal auditor for physical verification of inventory ?? If internal auditor provides report on closing inventory can stat auditor rely on same? (Based on 610, 501, Caro clause 2)

Question Tags: Caro, SA 501

2 Answers

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Ravi Staff answered 3 years ago

Yes statutory auditor can use work done by internal auditor with respect to “observation of inventory count” conducted by management. this is specified in SA 610 as example of work of internal audit which can be used.
after following procedures given in SA 610 he can use his work.
SA 501 is silent about this point.

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Ravi Staff answered 3 years ago

Further statutory auditor needs to have full control over external confirmation as per SA 505, so he cannot delegate this work to internal auditor and take his direct assistance