Cas 610 - Using the Work of Internal Auditors

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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…show more content…
Format and wording changes within the exposure draft 610 When the new revised exposure draft came out for ISA 610, the result was to bring the standard up to reflect the current organizational structures of companies. With the new revision of the standard there was a lot more detail added to most of the paragraphs and included examples for some of the subsections to provide more guidance to the auditors. There were subsections of the standards where just one word was changed but the one word change makes the difference from a suggestion to a requirement which could result in more work needed to be done by the external auditor to make sure that they are in compliance with the standard. When additional work is required it has a direct cost associated with it but it can also have indirect cost or benefits as well. An example of this is when the new standard changed the wording from “should” to “must”, this results in more work for the external auditor to make sure that they document that they followed that specific guideline which is a direct cost. But the indirect cost or benefit can be that the auditor had done this work before and now they have to document their work to show proof or if it wasn’t done before it could have an indirect benefit as it can provide more documented proof of how they reached their decision on the overall audit. (International Federation of Accountants, 2010) (International Auditing and Standards
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