My first week highlight is from the strategic planning issues study unit. I am highlighting this unit because of a conversation I had with a contact from another organization on using the work of internal auditors by the external auditor.

AS 1215 is a PCAOB standard that establishes general requirements for documentation the auditor should prepare and retain in connection with engagements conducted. This documentation facilitates the planning, performance, and supervision of the engagement, and serves as the basis for the review of the quality of the work because it provides the reviewer with written documentation of the evidence supporting the auditor's significant conclusions.

"The external auditor has to exercise judgment when determining whether the internal auditors, subject to law and regulation, can provide direct help in the financial statement audit of an entity," (Leung, n.d.). During an audit, the external auditor must check back to the underlying audit evidence for some of the work performed by the internal auditors.

Linking the last sentence to the conversation we had, at the end of their most recent audit, the external auditors requested for an additional audit evidence which was not familiar to the current team. After further discussion it was detected that those evidence were missing from the previous audits dating back as far as 2018. Both set of auditors did not discover this, and it only came up during the current concur audit.

What happens to the previous audit after this detection of inadequate evidence gathering?

Reference

Leung, E. Y. W. (n.d.). Using the work of internal auditors. Retrieved fromhttps://www.accaglobal.com/gb/en/student/exam-support-resources/fundamentals-exams-study-resources/f8/technical-articles/internal-auditors.html