Chapter 6 Planning & performing an Internal Audit engagement

Question 1

Types of Audit engagements

Answer 1

1- Compliance audit engagement (internal control audit)
2- Financial audit engagement (financial statements)
3- Operational audit engagement (performance of business)

Question 2

Stages of an Audit engagement process

Answer 2

1- Planning engagement (2200)
2- Performing engagement (2300)
3- Communicating results (2400)
4- Monitoring progress (2500)

Question 3

Stage 1: Planning steps

Answer 3

1- Obtain an understanding of the engagement client
2- Provisional contract with client
3- Preliminary survey
4- Risk assessment
5- Determine engagement objectives, criteria, scope
6- Identify and allocate resources
7- Work program
8- Final confirmation from management

Question 4

Stage 2: Performing the engagement steps

Answer 4

1- Identify the information regarding the engagement
2- Perform the engagement procedures
3- Analize and evaluate evidence
4- Prepare working papers

*Supervision is a 5de stap. onthou dit is die CAE se verantwoordelikheid om te verseker dat die regte vlak van supervision teenwoordig is afhangend van die audit span se ondervinding ens

Question 5

Stage 3: Communicate results

Answer 5

the audit results should be communicated

Question 6

Stage 4: Monitoring progress

Answer 6

CAE should maintain the system and processes in order to monitor results

Question 7

What is enterprise risk management? (ERM)

Answer 7

The process that managemen uses to identify, analyse, measure and manage risks.

The outcome of the ERM process is used by the IAA to plan the audit engagement

Question 8

What is the two types of risk?

Answer 8

Strategic ( organisation as a whole)

Operational ( day to day activities)