Securimax Limited (Securimax) has been an audit client of KFP Partners (KFP) for the past 15 years. Securimax is based in Waterloo, where it manufactures high-tech armour-plated personnel carriers. Securimax often has to go through a competitive market tender process to win large government contracts. Its main product, the small but powerful Terrain Master, is highly specialized and Securimax only does business with nations that have a recognized, democratically elected government. Securimax maintains a highly secure environment, given the sensitive and confidential nature of its vehicle designs and its clients.
Clarke Field has been the engagement partner on the Securimax audit for the last five years. Clarke is a specialist in the defense industry and intends to remain as review partner when the audit is rotated next year to a new partner (Sally Woodrow, who is to be promoted to partner to enable her to sign off on the audit).
Securimax has a small internal audit department that is headed by an ex-partner of KFR Rydell Crow. Rydell joined Securimax six years ago, after leaving KFP and completing his Chartered Accountant qualifications. Rydell is assisted by three junior internal auditors, all of whom are completing Bachelor of Accounting and Financial Management studies at the University of Waterloo. Securimax's fiscal year end is December 31.
Required
Discuss the effect, if any, of CAS 600 on Clarke Field's consideration of Securimax's internal audit department for the financial statement audit.