Internal Audit

Question 1

Functions

Answer 1

Examining Evaluating and monitoring the effectiveness of internal control

Question 2

Internal v external

Answer 2

Internal (external

PURPOSE - helps directors meet business objectives / (give opinion on FS , T&F?)

REPORTS TO- directors ,audit committee / (SH)

SCOPE- varied- defined by directors/ (CA 2006 + ISAs)

STATUS - voluntary-though required by CG code/ (legal requirement if thresholds met)

QUALIFICATIONS - none / (professional qualifications)

Question 3

Activities of internal audit

Answer 3

-Monitoring internal controls

Monitoring overall process- providing assurance that controls meet objs and operate effectively

Not development

• Examining financial and operating information
• value for money reviews
• special investigations (fraud)