Assess and document planned reliance on external parties
i. Based on a review of the Internal Audit Charter and using the background and permanent information for the Audit Client, assess the following characteristics of the Internal Audit Unit and document conclusions:
- Objectivity: How does the internal audit function fit within the client’s organisational structure? Is internal audit sufficiently independent?
- Technical competence: Outline the structure of the internal audit unit, including number of team members and their positions. Do the team members have sufficient qualifications and/or experience for their role?
- Due professional care: Is there evidence of relevant planning by the internal audit unit? Is there evidence of sufficient supervision within the internal audit unit? Is there evidence of sufficient quality control within the internal audit unit?
- Communication: Is there evidence of available access to documentation and communication with Internal Audit, free from interference by client management?
- Identify possible audits which may be relevant for external audit to rely upon. Note: Final decision regarding reliance will depend upon results of review of the completed work papers.
ii. Select the information you feel is relevant to include as permanent information in the electronic workpapers. Record it in the workpaper where permanent information can be kept.
iii. Form an overall conclusion as to whether you plan to rely upon the work of Internal Audit.
Permanent File Information:
Testing Results:[Form id=”7″]