Internal Audit and External Audit Relationship

AA – Nov 2019 – L2 – Q4b – Internal Audit and Its Relationship with External Audit

Defines outsourcing and discusses the advantages and disadvantages of outsourcing the internal audit function.

Question

he management of your company is carrying out major restructuring of the operations of the company for more effective and efficient achievement of objectives and targets. One of the major decisions taken was the outsourcing of the Internal Audit Function.

Required:
i) Define outsourcing. (2 marks)
ii) Identify FOUR (4) advantages and FOUR (4) disadvantages of outsourcing the internal audit function. (8 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Advantages, Disadvantages, Efficiency, Internal Audit, Outsourcing
Level: Level 2

Topic: Internal Audit and External Audit Relationship
Series: NOV 2019

AA – Nov 2017 – L2 – Q1a – nternal Audit and External Audit Relationship

Discuss the benefits of forming an audit committee for Ebaatsake Ltd based on issues raised in a scenario.

Question

Ebaatsake Ltd designs and manufactures luxury motor vehicles. The company employs 2,500 staff and consistently makes a net profit of between 10% and 15% of sales. Ebaatsake Ltd is not listed; its shares are held by 15 individuals, most of them from the same family. The maximum shareholding is 15% of the share capital.

The executive directors are drawn mainly from the shareholders. There are no non-executive directors because the company legislation in Ebaatsake Ltd’s jurisdiction does not require any. The executive directors are very successful in running Ebaatsake Ltd, partly from their training in production and management techniques, and partly from their hands-on approach providing motivation to employees.

The board is considering a significant expansion of the company. However, the company’s bankers are concerned with the standard of financial reporting as the Finance Director (FD) has recently left Ebaatsake Ltd. The board is delaying provision of additional financial information until a new FD is appointed.

Although Ebaatsake Ltd does have an internal audit department, the Chief Internal Auditor frequently complains that the board of Ebaatsake Ltd does not understand his reports nor provide sufficient support for his department and the internal control systems within Ebaatsake Ltd. The board of Ebaatsake Ltd concurs with this view. Adoko & Co, the external auditors, have also expressed concern in this area and the fact that the internal audit department focuses work on control systems, not financial reporting. Adoko & Co are appointed by and report to the board of Ebaatsake Ltd.

The board of Ebaatsake Ltd is considering a proposal from the Chief Internal Auditor to establish an audit committee. The committee would consist of one executive director, the chief internal auditor as well as three new appointees. One appointee would have a non-executive seat on the board of directors.

Required:
Discuss how the formation of an audit committee could address the issues raised in the above scenario.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Committees, Board of Directors, Corporate Governance, External Auditors, Financial Reporting, Internal Audit
Level: Level 2

Topic: Internal Audit and External Audit Relationship
Series: NOV 2017

AA – May 2016 – L2 – Q2b – Internal Audit and External Audit Relationship

This question discusses the benefits of establishing an internal audit department for a company.

Question

(b) Discuss the benefits of Tark Co establishing an Internal Audit Department. (8 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Corporate Governance, Internal Audit, Internal Controls, Risk Assessment, Value for Money
Level: Level 2

Topic: Internal Audit and External Audit Relationship
Series: MAY 2016

AA – Nov 2016 – L2 – Q2a – Internal Audit and Its Relationship with External Audit

Explain the key functions of an internal audit department.

Question

Discuss THREE functions of an internal audit department.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Functions, Internal Audit
Level: Level 2

Topic: Internal Audit and External Audit Relationship
Series: NOV 2016

AA – April 2022 – L2 – Q4b – Internal Audit and External Audit Relationship

Proposes the establishment of an internal audit unit and explains the benefits of outsourcing the function to an external firm.

Question

b) Aggya Owusu & Co is a well-established audit firm licensed by the Institute of Chartered Accountants, Ghana (ICAG). The firm is a member of a global association of over 250 independent legal and accounting firms in more than 100 countries.

Aggya Owusu & Co has been the External Auditor of BetGhana Ltd (BetGhana) for about four years. BetGhana has recently been awarded a provisional license by the Gaming Commission of Ghana to operate an Online Sports betting operation. The provisional license requires BetGhana to establish a unit with sufficient independence from the day-to-day management and control to enable the effective review of the business and promote a compliance environment, undertake betting-customer due diligence with respect to money laundering and terrorist financing.

Required:
As the Audit Manager of Aggya Owusu & Co, write a proposal to the Directors of BetGhana explaining:
i) The need for an Internal Audit Unit. (5 marks)
ii) FOUR (4) benefits of outsourcing the Internal Audit function to Aggya Owusu & Co. (5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Proposal, Corporate Governance, Internal Audit, Outsourcing
Level: Level 2

Topic: Internal Audit and External Audit Relationship
Series: APR 2022

AA – Nov 2019 – L2 – Q4b – Internal Audit and Its Relationship with External Audit

Defines outsourcing and discusses the advantages and disadvantages of outsourcing the internal audit function.

Question

Required:
i) Define outsourcing. (2 marks)
ii) Identify FOUR (4) advantages and FOUR (4) disadvantages of outsourcing the internal audit function. (8 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Advantages, Disadvantages, Efficiency, Internal Audit, Outsourcing
Level: Level 2

Topic: Internal Audit and External Audit Relationship
Series: NOV 2019

AA – Nov 2017 – L2 – Q1a – nternal Audit and External Audit Relationship

Discuss the benefits of forming an audit committee for Ebaatsake Ltd based on issues raised in a scenario.

Question

Required:
Discuss how the formation of an audit committee could address the issues raised in the above scenario.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Committees, Board of Directors, Corporate Governance, External Auditors, Financial Reporting, Internal Audit
Level: Level 2

Topic: Internal Audit and External Audit Relationship
Series: NOV 2017

AA – May 2016 – L2 – Q2b – Internal Audit and External Audit Relationship

This question discusses the benefits of establishing an internal audit department for a company.

Question

(b) Discuss the benefits of Tark Co establishing an Internal Audit Department. (8 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Corporate Governance, Internal Audit, Internal Controls, Risk Assessment, Value for Money
Level: Level 2

Topic: Internal Audit and External Audit Relationship
Series: MAY 2016

AA – Nov 2016 – L2 – Q2a – Internal Audit and Its Relationship with External Audit

Explain the key functions of an internal audit department.

Question

Discuss THREE functions of an internal audit department.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Functions, Internal Audit
Level: Level 2

Topic: Internal Audit and External Audit Relationship
Series: NOV 2016

AA – April 2022 – L2 – Q4b – Internal Audit and External Audit Relationship

Proposes the establishment of an internal audit unit and explains the benefits of outsourcing the function to an external firm.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Proposal, Corporate Governance, Internal Audit, Outsourcing
Level: Level 2

Topic: Internal Audit and External Audit Relationship
Series: APR 2022

Topic: Internal Audit and External Audit Relationship

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

AA – Nov 2019 – L2 – Q4b – Internal Audit and Its Relationship with External Audit

Defines outsourcing and discusses the advantages and disadvantages of outsourcing the internal audit function.

AA – Nov 2017 – L2 – Q1a – nternal Audit and External Audit Relationship

Discuss the benefits of forming an audit committee for Ebaatsake Ltd based on issues raised in a scenario.

AA – May 2016 – L2 – Q2b – Internal Audit and External Audit Relationship

This question discusses the benefits of establishing an internal audit department for a company.

AA – Nov 2016 – L2 – Q2a – Internal Audit and Its Relationship with External Audit

Explain the key functions of an internal audit department.

AA – April 2022 – L2 – Q4b – Internal Audit and External Audit Relationship

Proposes the establishment of an internal audit unit and explains the benefits of outsourcing the function to an external firm.

AA – Nov 2019 – L2 – Q4b – Internal Audit and Its Relationship with External Audit

Defines outsourcing and discusses the advantages and disadvantages of outsourcing the internal audit function.

AA – Nov 2017 – L2 – Q1a – nternal Audit and External Audit Relationship

Discuss the benefits of forming an audit committee for Ebaatsake Ltd based on issues raised in a scenario.

AA – May 2016 – L2 – Q2b – Internal Audit and External Audit Relationship

This question discusses the benefits of establishing an internal audit department for a company.

AA – Nov 2016 – L2 – Q2a – Internal Audit and Its Relationship with External Audit

Explain the key functions of an internal audit department.

AA – April 2022 – L2 – Q4b – Internal Audit and External Audit Relationship

Proposes the establishment of an internal audit unit and explains the benefits of outsourcing the function to an external firm.

Our offerings

Contact Info

Customer

Get In Touch

Topic: Internal Audit and External Audit Relationship

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

AA – Nov 2019 – L2 – Q4b – Internal Audit and Its Relationship with External Audit

Defines outsourcing and discusses the advantages and disadvantages of outsourcing the internal audit function.

You're reporting an error for "AA – Nov 2019 – L2 – Q4b – Internal Audit and Its Relationship with External Audit"

AA – Nov 2017 – L2 – Q1a – nternal Audit and External Audit Relationship

Discuss the benefits of forming an audit committee for Ebaatsake Ltd based on issues raised in a scenario.

You're reporting an error for "AA – Nov 2017 – L2 – Q1a – nternal Audit and External Audit Relationship"

AA – May 2016 – L2 – Q2b – Internal Audit and External Audit Relationship

This question discusses the benefits of establishing an internal audit department for a company.

You're reporting an error for "AA – May 2016 – L2 – Q2b – Internal Audit and External Audit Relationship"

AA – Nov 2016 – L2 – Q2a – Internal Audit and Its Relationship with External Audit

Explain the key functions of an internal audit department.

You're reporting an error for "AA – Nov 2016 – L2 – Q2a – Internal Audit and Its Relationship with External Audit"

AA – April 2022 – L2 – Q4b – Internal Audit and External Audit Relationship

Proposes the establishment of an internal audit unit and explains the benefits of outsourcing the function to an external firm.

You're reporting an error for "AA – April 2022 – L2 – Q4b – Internal Audit and External Audit Relationship"

AA – Nov 2019 – L2 – Q4b – Internal Audit and Its Relationship with External Audit

Defines outsourcing and discusses the advantages and disadvantages of outsourcing the internal audit function.

You're reporting an error for "AA – Nov 2019 – L2 – Q4b – Internal Audit and Its Relationship with External Audit"

AA – Nov 2017 – L2 – Q1a – nternal Audit and External Audit Relationship

Discuss the benefits of forming an audit committee for Ebaatsake Ltd based on issues raised in a scenario.

You're reporting an error for "AA – Nov 2017 – L2 – Q1a – nternal Audit and External Audit Relationship"

AA – May 2016 – L2 – Q2b – Internal Audit and External Audit Relationship

This question discusses the benefits of establishing an internal audit department for a company.

You're reporting an error for "AA – May 2016 – L2 – Q2b – Internal Audit and External Audit Relationship"

AA – Nov 2016 – L2 – Q2a – Internal Audit and Its Relationship with External Audit

Explain the key functions of an internal audit department.

You're reporting an error for "AA – Nov 2016 – L2 – Q2a – Internal Audit and Its Relationship with External Audit"

AA – April 2022 – L2 – Q4b – Internal Audit and External Audit Relationship

Proposes the establishment of an internal audit unit and explains the benefits of outsourcing the function to an external firm.

You're reporting an error for "AA – April 2022 – L2 – Q4b – Internal Audit and External Audit Relationship"

Our offerings

Contact Info

Customer

Get In Touch

admin