ASB exposes clarified auditing standard on internal audit

The Auditing Standards Board (ASB) has exposed a new, clarified standard that applies to use of the work of internal auditors.

With the issuance of the Proposed Statement on Auditing Standards (SAS), Using the Work of Internal Auditors, the ASB has completed the clarity project redrafting of its last unclarified AU section in the AICPA Professional Standards.

The proposed SAS would supersede AU Section 322 and AU-C Section 610, The Auditor’s Consideration of the Internal Audit Function in an Audit of Financial Statements.

Amendments include significant changes to AU-C Section 315, Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement. An explanatory memorandum describing the most significant changes to the SAS is provided in the exposure draft.

Comments are sought by July 15 and should be addressed to Sherry Hazel at

Readers are specifically asked:

  • To respond to the proposed requirements and application guidance relating to using internal auditors in a direct assistance capacity.
  • Whether the changes from the requirements and guidance included in International Standard on Auditing No. 610 (Revised 2013), Using the Work of Internal Auditors, are appropriate.



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