# SA 610 — Using the Work of Internal Auditors (Direct Assistance)
SA 610 governs how an External Auditor (EA) may use the Internal Audit Function (IAF) and obtain direct assistance from individual Internal Auditors (IAs). This portion focuses on direct assistance, coordination, and the safeguards required.
## 1. When EA Should Do More Work Directly (Less Reliance on IAF)
The EA shall make all significant judgments and use less of the IAF's work — performing more work directly — when:
- IAF's organisational status and the policies & procedures supporting objectivity of IAs are weak.
- There is a lower level of competence in the IAF.
- The assessed Risk of Material Misstatement (ROMM) is higher.
- More judgment is involved in:
- Planning and performing audit procedures, and
- Evaluating audit evidence gathered.
## 2. EA's Procedures on the Work of IAF
Before using the work of IAF, the EA shall perform audit procedures on the IAF's work to determine its adequacy for the auditor's purposes. Examples include:
- Observation of inventory counts
- Testing compliance with regulatory requirements
## 3. Discussion & Coordination with IAF
Useful matters to address include:
- Timing of work
- Nature of work performed
- Extent of audit coverage
- Proposed methods of item selection & sample sizes
- Materiality for FS as a whole and Performance Materiality (PM)
- Documentation of work performed
- Review & reporting procedures
Indicators of effective coordination:
- Discussions occur at appropriate intervals throughout the period
- EA informs IAF of significant matters
- EA has access to IAF reports and is informed of significant matters that come to the IAF's attention
## 4. Direct Assistance from Internal Auditors
Step 1: Is direct assistance permitted?
- Law & Regulation (L&R) may prohibit EA from obtaining direct assistance. If prohibited — stop.
Step 2: If not prohibited, EA shall evaluate —
- Significance of threats to objectivity of IAs, and
- Level of competence of IAs.
- This evaluation shall include inquiry of the IAs about interests and relationships that may threaten objectivity.
Step 3: When EA shall NOT use IAs for direct assistance —
- Significant threats exist to the IA's objectivity, or
- The IA lacks sufficient competence to perform the proposed work.
Step 4: Even when direct assistance is allowed, EA shall NOT use IAs for —
- Making significant judgments
- Work relating to higher ROMM
- Work that has been reported to Management or TCWG by the IAF
- Work relating to decisions the EA makes per SA 610.
## 5. Written Agreements Before Using Direct Assistance
Prior to using IAs to provide direct assistance, EA shall obtain:
- Written agreement from the entity — that the IA will be allowed to follow the EA's instructions, and that the entity will not intervene.
- Written agreement from the IA — that they will keep specific matters confidential and inform the EA of any threat to their objectivity.
## Quick Recall Summary
- IAF reliance ↓ when objectivity/competence ↓, ROMM ↑, judgment ↑.
- EA cannot delegate significant judgments or high-ROMM work.
- Two written agreements are mandatory: one from entity, one from IA.