CA Ajeet is appointed as a statutory auditor of Shravasti Ltd. Shravasti Ltd. is required to appoint an internal auditor as per statutory provisions…

As per SA 610, “Using the Work of Internal Auditor", the external auditor shall not use internal auditors to provide direct assistance to perform procedures that Involve making significant judgments in the audit. Since the external auditor has sole responsibility for the audit opinion expressed, the external auditor needs to make the significant judgments in the audit engagement. Significant judgments include the following: Assessing the risks of material misstatement;Evaluating the sufficiency of tests performed;Evaluating the appropriateness of management's use of the going concern assumption;Evaluating significant accounting estimates; andEvaluating the adequacy of disclosures in the financial statements, and other matters affecting the auditor's report. In view of the above, CA Ajeet cannot ask for direct assistance from internal auditors regarding evaluating significant accounting estimates and assessing the risk of material misstatements.