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auditors.
Division of Responsibility: Principal auditor must clarify division of responsibility in the report. Clearly state
reliance on other auditors' statements for entity's financial information. Mention extent of inclusion of data
audited by others (e.g., number of divisions/branches/subsidiaries).(OMP) + Quantify it in amount or
percentage

SA 610

Using the work of Internal Auditors

(CNO-SA610.020) Introduction

The External Auditor’s Responsibility for The Audit
Review of Internal Auditor's Report: It is important to review the Internal Auditor's Report, as it aids the
external auditor in procedural tests and audit planning.
Not Considered Independent: The internal audit function and internal auditors, while they may perform
similar audit procedures, are not considered independent of the entity, unlike the external auditor.
SA 610 Guidelines: SA 610, "Using the work of Internal Auditors," outlines specific conditions and guidelines
to ensure that external auditors can appropriately utilize the work of internal auditors. This framework aims to
provide factors for the external auditor's judgment, preventing excessive or unwarranted reliance on the
internal auditors' work.
External Auditor's Responsibility: The external auditor bears full responsibility for the audit opinion given,
regardless of their use of the internal audit function or internal auditors for direct assistance.

(CNO-SA610.040) Scope of This SA
1. Responsibilities of External Auditor: The Standard on Auditing (SA) outlines the responsibilities of an
external auditor when using the work of internal auditors. This includes below 2 situations.
1A. Using the work of Internal Auditor: The external auditor can use the work of the internal audit function
to obtain audit evidence.
1B. Direct Assistance from Internal Auditor: Internal auditors can provide direct assistance under the
direction, supervision, and review of the external auditor.
2. Not Applicable: This SA is not applicable if the entity does not have an internal audit function.

(CNO-SA610.060) The Objectives of The External Auditor, Where The Entity Has An Internal Audit
Function
The objectives of the external auditor, where the entity has an internal audit function
Whether to Rely Internal Auditor: To determine whether the work of the internal audit function or direct
assistance from internal auditors can be used.
Using Work of Internal Auditor: If using the work of the internal audit function, to determine whether that
work is adequate for purposes of the audit.
Using Internal Auditor for Direct Assistance: If using internal auditors to provide direct assistance, to
appropriately direct, supervise and review their work.

Definition of Internal Audit Function & Direct Assistance–
Internal Audit Function: A function of an entity that performs assurance and consulting activities designed
to evaluate and improve the effectiveness of the entity’s governance, risk management and internal control
processes.
Direct Assistance: The use of internal auditors to perform audit procedures under the direction, supervision
and review of the external auditor.

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