Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
11 Cards in this Set
- Front
- Back
|
The role of internal audit is to ? |
Understand the key risks of the organisation and to examine and evaluate the adequacy and effectiveness of the system of risk management and internal control in the organisation. |
|
|
The head of internal audit should be appointed by the audit committee. The head is responsible for: |
Developing an annual audit plan based on an assessment of significant risks. Submitting the plan to the audit committee for approval. Implementing the agreed audit plan. Maintaining a professional audit team with sufficient knowledge, skills and experience to carry out the plan |
|
|
why Audit planning is necessary ? |
To allocate audit resources to the highest risk areas and is based on the objectives of the organisation, the risk management system in place and the relative risks of each area to be audited |
|
|
Each audit must be carefully planned, beginning with a? |
preliminary survey to obtain background information about the area to be audited, and to judge the scope and depth of audit work to be undertake |
|
|
Testing is used to provide evidence to the auditor as to how a system or process is operating, in order to arrive at an opinion about the adequacy of internal controls. There are three types of tests: |
Walk-through test Compliance test Substantive test |
|
|
What is Statistical sampling? |
Statistical sampling is a technique of drawing valid conclusions about the total population by checking a sample which is representative of the population. |
|
|
The main methods of analytical review are? |
Ratio analysis Benchmarking Physical inspection CorroborationRe-calculationReconciliationSurveysQuestionnairesNarrativesFlowchartingTesting |
|
|
Analytical review is an important audit technique used to help analyse data to identify trends, errors, fraud, inefficiency and inconsistency. Its purpose is to ? |
Understand what has happened in a system, to compare this with a standard and to identify weaknesses in practice or unusual situations that may require further examination. |
|
|
An internal control questionnaire is a ? |
Checklist of the specific internal control techniques that should be present in a particular system to provide assurances about internal control. |
|
|
The audit should provide an? |
Understanding of the system or process, identify strengths and weaknesses, including gaps and overlaps and a comparison between the system or process in operation with that documented in formal manuals and procedures |
|
|
Working papers are an essential record of |
The work carried out by internal auditors and provide the evidence base that leads to conclusions and recommendations being made. |
