The ICAI has issued ‘Revised Standard on Auditing (SA) 610 – Using the Work of Internal Auditors’ which deals with the external auditor’s responsibilities in case of the work of internal auditors is used by them. It covers-
(a) using the work of the internal audit function in obtaining audit evidence and
(b) using internal auditors to provide direct assistance under the direction, supervision and review of the external auditor.
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 the external auditor.
This SA is effective for audits of financial statements for periods beginning on or after 01st April, 2016.