Chapter 9 - Internal Audit

Question 1

The factors to consider before introducing an IA

Answer 1

• scale and diversity of the org’s activities
• complexity of operations
• number of employees
• cost/benefit considerations
• The desire of senior management to have assurance and advice on risks and controls
• current control environment

Question 2

Internal audit assignments

Answer 2

Value for money
effectiveness of controls
fraud investigations
compliance with laws and regs
operational audits
Audit of IT systems
corporate governance
risk identification
financial audit

Question 3

Qualities of an effective IA function

Answer 3

sufficiently resourced
well organised
independent and objective
No operational responsibilities
Work plan agreed on by the audit committee
No limitation on the scope of their work