PwC submitted a comment letter supporting the ASB’s proposed Statement on Auditing Standards, Using the Work of Internal Auditors, including that the auditor should evaluate the application by the internal audit function of a systematic and disciplined approach, including quality control. PwC does not believe this represents a significant change in practice when the internal audit function will be used in the audit of the financial statements. PwC also supports the differences in the proposed SAS from International Standard on Auditing 610 (Revised 2013), Using the Work of Internal Auditors, with respect to using internal auditors in a direct assistance capacity. PwC agrees that these differences are responsive to longstanding practices in the United States and are appropriate.
PwC offers suggestions to improve the proposed SAS in finalizing it for issuance, including clarifying that the auditor may be able to use the work of the internal audit function if the nature of the internal audit function’s responsibilities and assurance activities is related to the entity’s financial reporting, even if the internal audit function does not perform all of the activities identified in the definition.