Cas 610 - Using the Work of Internal Auditors
FINAL PAPER
CAS 610, Using the Work of Internal Auditors
Paper for ACCT 343
Auditing
Wendy Popowich
Carrie Prosser
Bachelor of Applied Business Administration – Accounting
NAIT School of Business
Submitted: October 20, 2010
Due: October 20, 2010
TABLE OF CONTENTS
Executive summary 3
Introduction 4
Limitations in changes to the ISA 610 before implementation….. 5
Format and wording changes within the exposure draft 5
Using direct assistance from internal auditors 6
Using examples in the proposed exposure draft 10
Defining objectivity and competence 11
Alternatives 11
Conclusion 12
References 13
Executive Summary The current Canadian Auditing Standard [CAS] 610 has an exposure draft that is being reviewed currently to replace the current standard and to be implemented as CAS 610 (Revised), Using the Work of the Internal Auditors. The purpose of the revision of the standard is so that it increases the quality of audits by making the standard more relevant, useful and clear on the intent of the standard. There is one main addition to the standard in the exposure draft which is: using internal auditors for direct assistance when completed an audit which wasn’t included when the initial standard when it was adapted as CAS 610. There is guidance on when an internal auditor can be used for direct assistance as well as guidelines when they can not be used. The new exposure draft has also changed some of the wording to make the clear intent of the guideline to be understood and more headings and sub-headings to also allow more clearly the intent of the standard. My recommendation based on the findings in the report is to implement the new revised standard as it does successfully complete the purpose of the intent of the revision.
Introduction Canada first adapted ISA 610 as CAS 610 for financial statements on or after December 15, 2009. With this implementation of this new standard it was noted that there were many guidelines that were missing due to
CAS 610, Using the Work of Internal Auditors
Paper for ACCT 343
Auditing
Wendy Popowich
Carrie Prosser
Bachelor of Applied Business Administration – Accounting
NAIT School of Business
Submitted: October 20, 2010
Due: October 20, 2010
TABLE OF CONTENTS
Executive summary 3
Introduction 4
Limitations in changes to the ISA 610 before implementation….. 5
Format and wording changes within the exposure draft 5
Using direct assistance from internal auditors 6
Using examples in the proposed exposure draft 10
Defining objectivity and competence 11
Alternatives 11
Conclusion 12
References 13
Executive Summary The current Canadian Auditing Standard [CAS] 610 has an exposure draft that is being reviewed currently to replace the current standard and to be implemented as CAS 610 (Revised), Using the Work of the Internal Auditors. The purpose of the revision of the standard is so that it increases the quality of audits by making the standard more relevant, useful and clear on the intent of the standard. There is one main addition to the standard in the exposure draft which is: using internal auditors for direct assistance when completed an audit which wasn’t included when the initial standard when it was adapted as CAS 610. There is guidance on when an internal auditor can be used for direct assistance as well as guidelines when they can not be used. The new exposure draft has also changed some of the wording to make the clear intent of the guideline to be understood and more headings and sub-headings to also allow more clearly the intent of the standard. My recommendation based on the findings in the report is to implement the new revised standard as it does successfully complete the purpose of the intent of the revision.
Introduction Canada first adapted ISA 610 as CAS 610 for financial statements on or after December 15, 2009. With this implementation of this new standard it was noted that there were many guidelines that were missing due to
References: Chartered Accountants of Canada. (n.d.). Canadian Standards in Transition. Retrieved October 16, 2010, from CAS 610, Using the Work of Internal Auditors: http://www.cica.ca/cas/cas-comparative-mapping-tool/item33269.aspx Exposure Draft - "Using the Work of Internal Auditors". (2010, August 26). Retrieved from Auditing and Assurance Standards Board: http://www.aasbcanada.ca/documents-for-comment/item41590.pdf International Auditing and Standards Board. (n.d.). ISA Handbook. Retrieved September 2010, from International Federation of Accountants: http://web.ifac.org/download/a034-2010-iaasb-handbook-isa-610.pdf International Federation of Accountants. (2010, July 10). Proposed International Standards of Auditing. Retrieved September 2010, from http://www.ifac.org/Guidance/EXD-Details.php?EDID=0141