QUESTIONS ON FUNCTIONS OF A INTERNAL AUDIT
QUESTION ONE
Define control risk and tests of control.
QUESTION TWO
What is a control environment?
QUESTION THREE
What are control procedures?
QUESTION FOUR
What is the importance of an internal control system to the client?Whose responsibility is it to put in place an internal control system?
QUESTION FIVE
Why does the auditor ascertain, record and evaluate the client’s internal control system?
QUESTION SIX
List down in point form an internal control system for the raw materials purchasing system of a large manufacturing firm.
QUESTION SEVEN
What is a management letter and what function does it serve?
QUESTION EIGHT
The directors of one of your growing clients have decided to create an internal audit function in their organizational structure.
QUESTION NINE
- List and briefly describe the duties you would expect the internal audit staff to perform.
- List and explain the criteria you would consider before deciding to rely on the work of the internal audit function
- State the extent to which you, as the external auditor can rely on the work of the internal audit function