Chapter 9: Internal audit

Question 1

What is internal audit?

Answer 1

An independent appraisal activity established within an organisation.

Question 2

Although an internal audit cannot be entirely independent, how can they retain objectivity?

Answer 2

• Having no involvement in the operational activities of the business.
• Report to appropriate level of management. E.g. audit comitte.

Question 3

What are some of the roles of internal auditors?

Answer 3

• Monitoring systems of internal control
• Examining financial and operating info
• Special investigations
• Review complain with laws and regulations
• Reviewing the economy, efficiency and effectiveness of operations.
• Managing overall risk management