Chapter 5: Internal audit

Question 1

Role of Internal Audit

Answer 1

• Examination and evaluation of financial and operating information -> capture monitoring of risks and evidencing of controls.
• Review of 3Es
• Review of compliance with external laws and regulations and internal policy and procedures.
• Advice on of key organizational systems -> review on the implementation

Question 2

Scope of Internal Audit

Answer 2

Evaluating and commenting on the effectiveness of risk
management, control and corporate governance processes.
Management is ultimately responsible for ensuring appropriate
procedures are in place.
An approved „internal audit charter‟ should be in place setting out
scope, authority and function of internal audit.
Internal audit should have unlimited access.
Internal audit should, as far as possible be independent within the
organization.