## Direct Assistance from Internal Auditors

Governing Standard: SA 610 – Using the Work of Internal Auditors

### Definition

Direct assistance = the use of internal auditors to perform audit procedures under the direction, supervision and review of the external auditor.

### Written Agreements Required (Before Using Direct Assistance)

The external auditor must obtain two separate written agreements:

Agreement From	Content
(a) Authorised representative of the entity	Internal auditors will follow the external auditor's instructions; the entity will not intervene in the work performed
(b) Internal auditors themselves	They will keep specific matters confidential as instructed; they will inform the external auditor of any threat to their objectivity

### Procedures Where Direct Assistance is PROHIBITED

#	Prohibited Situation
(a)	Procedures involving significant judgments in the audit
(b)	Procedures relating to higher assessed risks of material misstatement where judgment required is more than limited
(c)	Procedures where the internal auditors' work has already been or will be reported to management or TCWG by the internal audit function
(d)	Procedures relating to decisions the external auditor makes regarding the internal audit function itself and the use of its work

### Permitted Example

Checking the arithmetic accuracy of an aging analysis (limited judgment) — can be assigned to internal auditors as direct assistance.

### Prohibited Example

Evaluating the adequacy of the provision based on the aging (involves more than limited judgment) — must be done by the external auditor.

Worked example

### Example 1

Scenario: CA Mukul (external auditor of Beige Ltd., FMCG manufacturer) decides to use the internal auditor for direct assistance. Before starting, CA Mukul must: (a) get written confirmation from Beige's management that the internal auditor will follow CA Mukul's instructions and Beige will not interfere; and (b) get written confirmation from the internal auditor that he will keep CA Mukul's instructions confidential and flag any threats to his independence. CA Mukul may then assign tasks like checking invoice totals or tracing entries to ledgers (limited judgment), but must personally perform procedures such as evaluating the recoverability of a specific large debtor (significant judgment) or assessing whether a material contingent liability should be recognised (higher risk, more-than-limited judgment).

⚠️ Common exam mistakes

Obtaining only one written agreement (from the entity) and forgetting to obtain the separate written agreement from the internal auditors themselves.
Assigning procedures involving significant judgment to internal auditors simply because they are familiar with the area — SA 610 prohibits this regardless of the internal auditor's competence.
Confusing 'using the work of internal auditors' (reading and evaluating completed internal audit work) with 'direct assistance' (internal auditors performing audit procedures at the external auditor's direction) — these are two distinct concepts under SA 610 with different requirements.
Allowing the entity to intervene in or review the internal auditor's work while they are providing direct assistance — the written agreement must specifically prevent this.

Bare-Act text Direct Assistance · SA 610 – Using the Work of Internal Auditors · click to expand

Direct assistance refers to the use of internal auditors to perform audit procedures under the direction, supervision and review of the external auditor.

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Direct Assistance from Internal Auditors — SA 610 Requirements and Limitations

Worked example

⚠️ Common exam mistakes