M/s PSR & Associates are the auditors of The Saturn Hotel, a chain of five-star hotels. Since the nature of their business is prone to frauds,…

As per SA 610, “Using the Work of Internal Auditors", coordination between the external auditor and the internal audit function is effective when, for example; Discussions take place at appropriate intervals throughout the period. The external auditor informs the internal audit function of significant matters that may affect the function. The external auditor is advised of and has access to relevant reports of the internal audit function and is informed of any significant matters that come to the attention of the function when such matters may affect the work of the external auditor so that the external auditor is able to consider the implications of such matters for the audit engagement.