- 10 Marks
PSAF – Nov 2020 – L2 – Q2a – Public Sector Audit
Discuss the external auditors' reliance on internal audit functions and reasons for rising public expenditure.
Question
An internal audit is an independent appraisal activity within an organisation for the review of accounting, financial, and other operations with the objective of assisting members of the organisation to discharge their responsibilities effectively. It is a sound policy to establish constructive working relationships with internal audit units to foster the development, promote coordinated coverage, and avoid duplication.
Required:
Explain the five criteria employed by the external auditors to assess the likely effectiveness and relevance of the internal audit functions and five areas where the internal audit functions can be of assistance to the external audit.
Find Related Questions by Tags, levels, etc.
- Tags: Audit Effectiveness, External audit, Internal Audit, Public Sector
- Level: Level 2
- Topic: Public sector audit
- Series: NOV 2020
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