2 Year Ban For Not Following SA 230

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CA Final Query

If external auditor uses internal auditor work where internal auditor did work of component of entity ...then sa 600 will apply and external auditor won't be responsible ...but if internal auditor did work of entity and external auditor uses that ..then sa 610 applies and external auditor wil be responsible for the opinion he gives and he will be responsible for the work he relied on of internal auditor too right

Answer

SA 600 is designed for external auditor relying on component auditor. in this case unless there is anything suspicious component auditor is responsible for audit of component.

SA 610 is designed for external auditor relying on internal auditor of same entity. In this case external auditor is only responsible for final audit report of entity.

External auditor relying on work of internal auditor is not directly covered in SA 610, but those principles can be applied.

Please ask queries on https://auditguru.in/discussion-points/ for early resolution.