Chapter 6 - Internal Audit

Question 1

Risk management vs Internal audit

Answer 1

• Risk management - identify risks, devise controls
• Internal audit - testing/evaluation of risk controls

Question 2

Audit Testing

Answer 2

• Compliance - test controls
• Analytical review - comapre years, ratios etc. / trends
• Substantive - e.g. check invoices
• Enquiry - ask questions
• Inspection / Observation