MAY/JUNE 2017 AUI 2601 REVISION PACK

MAY/JUNE 2017 AUI 2601 REVISION PACK 1.1 A – exchange of audit reports on matters of mutual interest 1.2 CSufficient information is factual, adequate and convincing, so that a prudent, informed person would reach the same conclusions as the auditor. Reliable information is the best attainable information through the use of appropriate engagement techniques. So, for example, an original document is more conclusive (reliable) than a copy, and direct evidence is more acceptable than hearsay evidence. Relevant information supports engagement observations and recommendations, and is consistent with the objectives for the engagement. Useful information helps the organisation meet its goals. The facts and opinions used to prove an issue must bear a logical relationship to that issue. For example, an original purchase order, properly approved and issued, has no relevance if the auditor wants to determine whether the goods have actually been received. 1.3 C - Iinternal auditors must apply the care and skill expected of a reasonably prudent and competent internal auditor. Due professional care does not imply infallibility. Internal auditors must exercise due professional care by considering the:  Extent of work needed to achieve the engagement’s objectives;  Relative complexity, materiality, or significance of matters to which assurance procedures are applied  Adequacy and effectiveness of governance, risk management, and control processes  Probability of significant errors, fraud, or noncompliance; and  Cost of assurance in relation to potential benefits