What does ISA 610 require from auditors regarding internal audits?

ISA 610 emphasizes the importance of understanding the internal audit function and the competence of the internal auditor when auditors are conducting their work. A significant aspect of the standard is that external auditors need to evaluate whether the internal auditors possess the necessary skills, qualifications, and experience to perform effectively. This assessment is crucial because it helps external auditors determine how much they can rely on the work of the internal audit function during their own audit processes. A competent internal audit function can enhance the overall quality of the financial reporting process, providing more reliable information for the external auditor's conclusions.

In contrast, performing internal audit functions directly is not required by ISA 610; the standard does not mandate auditors to take on the internal auditor's responsibilities or duties. Regarding the creation of detailed reports, while auditors may consider the reports generated by internal auditors, ISA 610 does not require them to produce their own detailed reports based on internal audit findings. Similarly, obtaining the internal auditor's work papers is not an explicit requirement of ISA 610; rather, auditors may consider relevant documentation as part of their work, but there is no obligation to access or review the internal audit’s work papers in a mandatory fashion. Therefore, the requirement to assess the internal auditor's competence stands out as the essential