The objectives of the external auditor, where the entity has an internal audit function and the external auditor expects to use the work of the function to modify the nature or timing, or reduce the extent, of audit procedures to be performed directly by …

For the purposes of this Auditing Standard, the following terms have the meanings attributed below: …

Internal audit function means 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 means the use of internal auditors to perform audit procedures under the direction, supervision and review of the external auditor. …

Evaluating the Internal Audit Function …

The external auditor shall determine whether the work of the internal audit function can be used for purposes of the audit by evaluating the following: The extent to which the internal audit function’s organisational status and relevant policies and …

The external auditor shall not use the work of the internal audit function if the external auditor determines that: The function’s organisational status and relevant policies and procedures do not adequately support the objectivity of internal auditors; …

Determining the Nature and Extent of Work of the Internal Audit Function that Can Be Used …

As a basis for determining the areas and the extent to which the work of the internal audit function can be used, the external auditor shall consider the nature and scope of the work that has been performed, or is planned to be performed, by the internal …

The external auditor shall make all significant judgements in the audit engagement and, to prevent undue use of the work of the internal audit function, shall plan to use less of the work of the function and perform more of the work directly: …