MODULE 6

Question 1

What’s an internal Audit?

Answer 1

Independent, Objective Assurance and consulting activity designed to add value and improve an organisations operations.
Helps to identify risk
Gives an Insight

Question 2

What is the need for an internal Audit

Answer 2

Some entities are required to have an internal Audit, this is a common requirement in the public sector,

If a company doesn’t have an internal Audit, the audit committee should consider annually whether there is a need for an internal audit function

Question 3

Why should companies choose to have an internal Audit function?

Answer 3

It can help the Company gain assurance that the management and control of the organisation is robust ( (strong and healthy)

Question 4

What relationship does the Internal audit have with Shareholders and Management?

Answer 4

To Shareholders: Internal Audit Function provides shareholders with a degree of assurance regarding effective operation of the company
To Management: Provides management with an independent view on the quality of internal Control exercised by them.
Management gain assurance that the systems operating are efficient, control against fraud and error, provide accurate error information

Question 5

What Aspect should there be for an effective Internal Audi

Answer 5

Internal Audit Process-There should be an Internal Audit plan, which details the schedule of Audits to be undertaken in the future period of time. Should prepared by internal audit manager, and approved by the audit Committee

Audit Committee should oversee, review and monitor the Audit

Should be sufficient resources to carry out the reviews on Internal audit plan for the year. Internal Audit team should have skilled members with suitable qualifications

Internal auditors should be independent of the activities that they manage, giving impartial an unbiased judgements

Internal auditors must undertake their work with due professional care, to promote consistency in quality of the internal Audit.