Examples of work of the internal audit function that can be used by the external auditor include the following: Testing of the operating effectiveness of controls. Substantive procedures involving limited judgement. Observations of inventory counts. …

The external auditor’s determination of the planned nature and extent of use of the work of the internal audit function will be influenced by the external auditor’s evaluation of the extent to which the internal audit function’s organisational status and …

Judgements in planning and performing audit procedures and evaluating results   (Ref: Para. 18(a)) …

The greater the judgement needed to be exercised in planning and performing the audit procedures and evaluating the audit evidence, the external auditor will need to perform more procedures directly in accordance with paragraph 18 of this Auditing …

Since the external auditor has sole responsibility for the audit opinion expressed, the external auditor needs to make the significant judgements in the audit engagement in accordance with paragraph 18 . Significant judgements include the following: …

Assessed risk of material misstatement   (Ref: Para. 18(b)) …

For a particular account balance, class of transaction or disclosure, the higher an assessed risk of material misstatement at the assertion level, the more judgement is often involved in planning and performing the audit procedures and evaluating the …

Designing and performing risk assessment procedures to obtain audit evidence in an unbiased manner may involve obtaining evidence from multiple sources within and outside the entity.   However, the auditor is not required to perform an exhaustive search …

As explained in ASA 315, [22]  significant risks require special audit consideration and therefore the external auditor’s ability to use the work of the internal audit function in relation to significant risks will be restricted to procedures that involve …

Carrying out procedures in accordance with this Auditing Standard may cause the external auditor to re-evaluate the external auditor’s assessment of the risks of material misstatement.  Consequently, this may affect the external auditor’s determination of …