- 15 Marks
AA – Nov 2018 – L2 – Q7 – Internal Audit
Explains internal audit, identifies weaknesses in audit structure, and outlines the differences between internal and external auditors.
Question
Good Weather Nigeria Plc is a company engaged in the business of manufacturing detergents with an annual turnover of N7 billion. It carries out its operations from six locations: Abuja, Enugu, Benin, Port-Harcourt, and Jos, with its head office in Lagos. The company has an internal audit function with three staff. The Chief Internal Auditor was recruited by the Executive Finance Director to facilitate a good working relationship between the finance and audit functions. All the staff in the unit are graduates and members of the Institute of Chartered Accountants of Nigeria (ICAN). The staff of internal audit have been in the unit for over eight years. The Chief Internal Auditor reports to the Executive Finance Director.
Required:
a. Explain the term “internal audit.”
(2 Marks)
b. Identify and explain the weaknesses in the above scenario.
(8 Marks)
c. Enumerate the differences between the roles of an internal auditor and an external auditor.
(5 Marks)
Find Related Questions by Tags, levels, etc.
- Tags: Audit Committee, Auditor Differences, Auditor Independence, Internal Audit
- Level: Level 2
- Topic: Internal Audits
- Series: NOV 2018