Internal Audit

Question 1

What is an internal audit?

Answer 1

An appraisal activity provided as a service to an entity involving examining, evaluating and monitoring the adequacy and effectiveness of internal controls

Question 2

What is the reason for an internal audit?

Answer 2

Safeguard assets
review efficiency and effectiveness of operations
Appraise adequacy of internal controls
Appraise compliance

Question 3

Who does the internal audit report to?

Answer 3

Those charged with governance
Audit committee

Question 4

What work relates to the internal audit?

Answer 4

Reviews
Financial reporting issues
Assistance to external auditor
Testing and reviewing efficiency
Value for money audits

Question 5

What is the internal audit relationship?

Answer 5

Employees so objectivity an issue

Question 6

What can internal auditors do?

Answer 6

Examining, reviewing, monitoring, testing and giving accounting advice

Question 7

What can internal auditors not do?

Answer 7

Identify risk in operations, develop controls, design controls, implement controls and authorising