ICAI Implementation Guide to Standard on Auditing (SA) 610 (Revised) Using the Work of Internal Auditors
Under the provisions of the Companies Act 2013, it is mandatory for auditors of companies to comply with the Standards on Auditing (SAs) issued by the Institutes of Chartered Accountants of India (ICAI). Auditors are expected to ensure compliance with SAs in their audit engagements to ensure quality audits.
The Auditing and Assurance Standards Board (the Board) of ICAI has issued a number of Implementation Guides to various Standards on Auditing for the benefit of the auditors. Now, the Board has brought out an Implementation Guide to Standard on Auditing (SA) 610 (Revised), “Using the work of Internal Auditors”.
The Implementation Guide has been published in a “Question-Answer” format containing frequently asked questions (FAQs) on the Standard and the responses to those FAQs.
SA 610 issued in 2009 specifically provided that it does not deal with the instances where individual internal auditors provide direct assistance to the external auditor in carrying out audit procedures. However, the revised standard specifically deals with this aspects where external auditors using internal auditors to provide them direct assistance in carrying out audit procedures. The Standard provides a number of conditions and safeguards for the external auditor in this regard.