- 6 Marks
AAA – May 2017 – L3 – Q4c – Internal audit and outsourcing | Public sector audit
Discuss the need for an Internal Audit Charter in public sector organizations and analyze the conflict of interest issues related to the composition of an Audit Report Implementation Committee (ARIC).
Question
A public sector organization has an Internal Audit function and an Audit Report Implementation Committee (ARIC) of the Board of Directors. The Internal Audit function does not have an Internal Audit Charter. Before the PFM Act, 2016 (Act 921) was enacted, the ARIC had three members: the Managing Director of the organization and two other directors, a legal practitioner, and a retired career diplomat.
Required:
i) Identify the need for and state TWO of the major issues the Internal Audit Charter must cover in a public sector organization. (4 marks)
ii) Discuss the conflict of interest and other issues raised by the composition of the organization’s ARIC in relation to the recommendations of the IIA. (2 marks)
Find Related Questions by Tags, levels, etc.
- Tags: ARIC, Conflict of Interest, IIA Recommendations, Internal Audit Charter, Public Sector
- Level: Level 3
- Topic: Internal audit and outsourcing, Public sector audit
- Series: MAY 2017