General

Question 1

Operational features of internal control (Turnbull)

Answer 1

• Embedded in operations
• Respond to changing needs
• Reporting procedures for weaknesses

Question 2

DPA Exemptions

Answer 2

• Manual
• Medical
• Payroll
• Crime

Question 3

Advantages of outsourcing internal audit

Answer 3

• Less management time
• Specialist skills
• Pass on risk of staff turnover
• Improve independence

Question 4

Disadvantages of outsourcing internal audit

Answer 4

• Decisions based on cost
• Conflict of interest if external auditors
• Less flexible
• Lose control over standard of service
• Local would understand objectives + culture

Question 5

Advantages of functional / divisional structure

Answer 5

Functional

• Economies of scale
• Reduce duplication
• Consistant marketing
• More goal congruent
• Records of movements difficult in divisions
• Unfair performance meaure in divisional (e.g. headhunting)

Divisional

• Speed/quality decision making
• Easier to determine product profit