Week 6 - How Independent is IA

Question 1

What is the first question that would be asked to determine if the internal audit is independent?

Answer 1

Can it decide its own pattern and scope of work?
Yes = independent

Question 2

What is the second question that would be asked to determine if the internal audit is independent?

Answer 2

Does it have unrestricted access to all senior records and staff, and to senior management?
Yes = independent

Question 3

What is the third question that would be asked to determine if the internal audit is independent?

Answer 3

Does the head of IA hold a senior level position, independent of the financial director?
Yes = independent

Question 4

What is the fourth question that would be asked to determine if the internal audit is independent?

Answer 4

Is it free from any operational activities?
Yes = independent

Question 5

What is the fifth question that would be asked to determine if the internal audit is independent?

Answer 5

Can it communicate freely with external audit?
Yes = independent

Question 6

What is the sixth question that would be asked to determine if the internal audit is independent?

Answer 6

Is it adequately resourced?
Yes = independent

Question 7

What is the seventh question that would be asked to determine if the internal audit is independent?

Answer 7

How competent is the internal audit function? - Professional qualifications, continued training
Very = independent

Question 8

What is the eighth question that would be asked to determine if the internal audit is independent?

Answer 8

Are internal audit recommendations effectively implemented?
Yes = independent