1. Scope of application
Auditing Standard 610 specifies and guides the responsibilities of auditors and audit firms (hereinafter referred to as “auditors”) in relation to the work of internal auditors when the auditor determines, as stipulated in paragraph 23 of Vietnamese Auditing Standard 315, that an internal auditor may be involved in the audit.See guidance in paragraphs A1–A2 of this Standard.).
This standard does not apply to cases where internal auditors are brought in to participate in an independent audit.
2. The relationship between internal audit and independent audit
The objectives of internal audit are determined by the Board of Directors and the management of the audited entity. Although the objectives of internal audit and the objectives of independent audit are different, in some cases, to achieve those objectives, internal audit and independent audit may apply some similar methods and procedures.See guidance in paragraph A3 of Standard 610.).
No matter how autonomous and objective internal audit may be, it cannot be completely independent of the audited entity as required of independent auditors when giving opinions on financial statements. Auditors and audit firms bear sole responsibility for their audit opinions, and this responsibility is not diminished when they utilize the work of internal auditors.
Auditors and audit firms must comply with the provisions and guidance of this Standard when utilizing the work of internal auditors in the performance of audits and the provision of related services.
The audited entity (client) and the parties using the audit results must have the necessary understanding of the provisions and guidance of this Standard to coordinate work and manage relationships related to the independent auditor's use of the internal auditor's work when performing audits and providing related services.
3. Objectives
When an audited entity has internal audit and an independent auditor determines that the internal audit may be relevant to the audit, the objectives of the auditor and the audit firm are:
- Determine the necessity and scope of specific tasks to be performed by internal auditors;
- Determine the adequacy and appropriateness of the specific work performed by the internal auditor in relation to the audit objectives.