Internal Audit and Its Relationship with External Audit – Page 2

AA – Nov 2024 – L2 – Q2b – Advantages of Outsourcing Internal Audit

Explain the advantages and disadvantages of outsourcing the internal audit function.

Question

As organisations look for ways to cut costs, the idea of outsourcing internal audit work goes on the agenda. While outsourcing may be appealing in theory, there are good reasons to keep internal audit in-house.

Required:
i) State TWO advantages of outsourcing the internal audit function.
ii) State THREE disadvantages of outsourcing the internal audit function.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Function, Business Strategy, Cost Management, Internal Audit, Outsourcing, Risk Management
Level: Level 2

Topic: Internal Audit and Its Relationship with External Audit
Series: Nov 2024

AA – July 2023 – L2 – Q4b – Internal Audit and Its Relationship with External Audit, Public Sector Auditing

Short notes on value for money audit and best value audit in public sector auditing.

Question

b) Modern approach to Internal Auditing has broadened the scope of the function of the Internal Audit. The focus has shifted from pure financial audit to cover other important areas of operation. These include performance audit, Value for Money audit, and performance information audit.

Required:
Write short notes on the following:
i) Value for money audit. (5 marks)
ii) Best value audit. (5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Best Value Audit, Performance Audits, Public Sector, Value for Money Audit
Level: Level 2

Topic: Internal Audit and Its Relationship with External Audit, Public Sector Auditing
Series: JULY 2023

AA – Nov 2023 – L2 – Q4d – Internal Audit and Its Relationship with External Audit

This question identifies measures to ensure the independence of the internal auditor.

Question

The independence of an internal auditor can be challenging, especially if he or she is a full-time employee, as compared to the external auditor who is not an officer of the company. For that matter, companies try to ensure the independence of the internal auditor through various methods.

Required:
Identify and explain FIVE (5) measures that can be put in place to ensure the independence of the internal auditor.
(10 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Committee, Corporate Governance, Independence, Internal Audit
Level: Level 2

Topic: Internal Audit and Its Relationship with External Audit
Series: NOV 2023

AA – Mar 2023 – L2 – Q4b – Internal Audit and Its Relationship with External Audit

Explain the functions of the Internal Audit Agency (IAA) and how it facilitates the work of internal auditors in MDAs and MMDAs.

Question

The Internal Audit Agency (IAA) of Ghana was established by the Internal Audit Agency Act 2003 (Act 658) to act as an apex oversight body for Internal Audit units working with MDAs and MMDAs. Although the Internal Audit Agency plays an important role in the country’s economy, very little is known about their operations.

Required:
As an Internal Auditor who wants to bridge this knowledge gap:
i) Explain the functions of the Internal Audit Agency (IAA). (7 marks)
ii) Explain how the IAA facilitates the work of internal auditors in MDAs and MMDAs. (3 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: IAA Act, Internal Audit, MDAs, MMDAs, Public Sector Auditing
Level: Level 2

Topic: Internal Audit and Its Relationship with External Audit
Series: MAR 2023

AA – Nov 2017 – L2 – Q2a – Internal Audit and Its Relationship with External Audit

Compare and contrast the roles of internal auditors and external auditors.

Question

Internal audit is a function established by management to assist in corporate governance by assessing internal controls and helping in risk management. It can be a department of employees or outsourced to expert service providers.

Internal auditing is different from external auditing, although the techniques used by both are very similar. While the technique used may be similar, the focus and reasons behind the audit are different.

Required:
Compare and contrast the roles of internal auditors and external auditors.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Roles, Corporate Governance, External audit, Internal Audit, Risk Management
Level: Level 2

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

AA – Nov 2020 – L2 – Q4b – Internal Audit and Its Relationship with External Audit

Discuss the role of internal audit in corporate governance and risk management.

Question

You have responded to an advertisement by a reputable company for the appointment of an internal auditor. You realized the need to prepare well for the interview.

Required:
In anticipation of the questions you may be asked at the interview, discuss the role of internal audit in corporate governance and risk management.
(10 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Role, Corporate Governance, Internal Audit, Internal Controls, Risk Management
Level: Level 2

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

AA – Dec 2022 – L2 – Q2a – Internal Audit and Its Relationship with External Audit

Describes the five key roles external auditors play in corporate governance to ensure the transparency and reliability of financial statements.

Question

External Auditors play a key role in the corporate governance framework. They conduct one of the most important corporate governance checks that help to monitor management’s activities. The audit of financial statements makes disclosures more reliable, thus increasing confidence in the company’s transparency.

Required:
Explain FIVE (5) roles that External Auditors play in Corporate Governance.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Role, Corporate Governance, External Auditors, Financial Statements, Governance, ISA, Management
Level: Level 2

Topic: Internal Audit and Its Relationship with External Audit
Series: DEC 2022

AA – May 2017 – L2 – Q2b – Internal Audit and Its Relationship with External Audit

Distinction between internal audit and internal check.

Question

Distinguish between internal audit and internal check.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Financial Control, Fraud Detection, Fraud Prevention, Internal Audit, Internal Check

Topic: Internal Audit and Its Relationship with External Audit
Series: MAY 2017

AA – May 2017 – L2 – Q2a – Internal Audit and Its Relationship with External Audit

Explanation of the role of internal audit in risk management.

Question

Explain the role of Internal Audit in relation to risk management in an organization.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Corporate Governance, Internal Audit, Internal Controls, Risk Management, Risk Mitigation
Level: Level 2

Topic: Internal Audit and Its Relationship with External Audit
Series: MAY 2017

AA – Nov 2016 – L2 – Q2d – Internal Audit and Its Relationship with External Audit

Compare and contrast the roles of internal and external auditors.

Question

Compare and contrast the role of internal auditors and external auditors. (4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Comparison, External Auditors, Internal Auditors
Level: Level 2

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

AA – Aug 2022 – L2 – Q4b – Internal Audit and Its Relationship with External Audit

Identifies measures that can be implemented to ensure the independence of the internal audit function.

Question

A major criticism of Internal Audit is that it lacks independence. Many factors may contribute to this perceived lack of independence.

Required:
Identify FIVE (5) measures that can be put in place to ensure the independence of the Internal Audit function.

Answer

Find Related Questions by Tags, levels, etc.

Level: Level 2

Topic: Internal Audit and Its Relationship with External Audit
Series: AUG 2022

AA – May 2021 – L2 – Q4c – Internal Audit and Its Relationship with External Audit

Explain limitations of the Internal Audit Unit and steps to ensure independence.

Question

Internal audit is one of the supporting functions within an organisation. This function is set up reluctantly in many entities. It is most of the time denied the recognition and resources it requires to operate. Internal Auditors report administratively to the CEO’s of organisations even though they are required to functionally report to the Audit Committees of their respective organisations on professional issues.

Required:
Explain FIVE (5) limitations of the Internal Audit Unit and discuss steps that the Internal Audit Unit can initiate to remain independent even though they are employees of a company. (10 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Committee, Independence, Internal Audit, Internal Controls, Limitations
Level: Level 2

Topic: Internal Audit and Its Relationship with External Audit
Series: MAY 2021

AA – Nov 2021 – L2 – Q1a – Internal Audit and its Relationship with External Audit

Explains two advantages and three disadvantages of outsourcing an internal audit function to an external company.

Question

Traditionally, internal audit work is undertaken mainly by in-house teams. However, in recent times many organizations outsource either completely or partially their internal audit function. Kofi Krakye, the Financial Controller of BHB Ltd, has advised management to consider outsourcing their internal audit function to FPP Ltd.

Required:
Explain TWO (2) advantages and THREE (3) disadvantages of outsourcing the internal audit function to FPP Ltd.
(5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Advantages, Conflict of Interest, Continuity, Cost, Disadvantages, External audit, Internal Audit, Outsourcing
Level: Level 2

Topic: Internal Audit and Its Relationship with External Audit
Series: NOV 2021

AA – Nov 2018 – L2 – Q2a – Internal Audit and Its Relationship with External Audit

Discusses the advantages and disadvantages of outsourcing the internal audit function compared to maintaining an in-house team.

Question

a) Proper Banking Limited (PBL) has been trading for 20 years selling banking products and has recently become a listed company. In accordance with corporate governance principles of Bank of Ghana, PBL maintains a small internal audit department. The board of directors feels that the authorized business of the Company is banking which is core to the success of PBL. On 20 November 2017, the Operational and Governance Committee of the Board met to discuss whether to maintain the internal audit department and increase its size and build its expertise or to outsource the whole function to their external auditors, International & Co with headquarters in Accra, Ghana, with a global presence in over ninety-nine (99) countries.

Required:
Advise the Board of PBL on the advantages and disadvantages of whether to outsource or maintain their internal audit function. (10 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Costs, Audit Staffing, Confidentiality, Internal Audit, Internal Control, Outsourcing
Level: Level 2

Topic: Internal Audit and Its Relationship with External Audit
Series: NOV 2018

AA – Mar 2024 – L2 – Q5b – Internal Audit and Its Relationship with External Audit

Recommend internal control procedures for cheque payments and petty cash systems for Automaga Ltd.

Question

Automaga Ltd has recently acquired the controlling interest in Alkars Ltd, who are importers of car spare parts. In reviewing the organisational structure of Alkars Ltd, Automaga Ltd noticed a weakness in the procedures for the signing of cheques and the operation of the petty cash system. Automaga Ltd engaged you as the company’s auditor and requested that you review the controls over cheque payments and petty cash. Cheques are drawn almost every week and the petty cash account normally has a working balance of about GH¢600, and GH¢1,200 is expended from the fund each month.

Required:
Prepare a letter to Automaga Ltd highlighting your recommendations for good internal control procedures for:
i) Cheque payments. (5 marks)
ii) Petty cash. (5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cash Management, Cheque Payments, Internal Control, Petty Cash
Level: Level 2

Topic: Internal Audit and Its Relationship with External Audit
Series: MAR 2024

AA – Mar 2024 – L2 – Q4b – Internal Audit and Its Relationship with External Audit

Explain the differences between internal and external auditors in fraud prevention, detection, and reporting responsibilities.

Question

There are similarities and differences between the responsibilities of internal and external auditors. Both internal and external auditors have responsibilities relating to the prevention, detection, and reporting of fraud, for example, but their responsibilities are not the same.

Required:
In reference to the statement above, explain the difference between the responsibilities of internal auditors and external auditors in relation to:
i) Prevention and detection of fraud. (5 marks)
ii) Reporting of fraud. (5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: External audit, Fraud Detection, Fraud Prevention, Internal Audit, Reporting of Fraud
Level: Level 2

Topic: Internal Audit and Its Relationship with External Audit
Series: MAR 2024

Topic: Internal Audit and Its Relationship with External Audit

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

AA – Nov 2024 – L2 – Q2b – Advantages of Outsourcing Internal Audit

Explain the advantages and disadvantages of outsourcing the internal audit function.

You're reporting an error for "AA – Nov 2024 – L2 – Q2b – Advantages of Outsourcing Internal Audit"

AA – July 2023 – L2 – Q4b – Internal Audit and Its Relationship with External Audit, Public Sector Auditing

Short notes on value for money audit and best value audit in public sector auditing.

You're reporting an error for "AA – July 2023 – L2 – Q4b – Internal Audit and Its Relationship with External Audit, Public Sector Auditing"

AA – Nov 2023 – L2 – Q4d – Internal Audit and Its Relationship with External Audit

This question identifies measures to ensure the independence of the internal auditor.

You're reporting an error for "AA – Nov 2023 – L2 – Q4d – Internal Audit and Its Relationship with External Audit"

AA – Mar 2023 – L2 – Q4b – Internal Audit and Its Relationship with External Audit

Explain the functions of the Internal Audit Agency (IAA) and how it facilitates the work of internal auditors in MDAs and MMDAs.

You're reporting an error for "AA – Mar 2023 – L2 – Q4b – Internal Audit and Its Relationship with External Audit"

AA – Nov 2017 – L2 – Q2a – Internal Audit and Its Relationship with External Audit

Compare and contrast the roles of internal auditors and external auditors.

You're reporting an error for "AA – Nov 2017 – L2 – Q2a – Internal Audit and Its Relationship with External Audit"

AA – Nov 2020 – L2 – Q4b – Internal Audit and Its Relationship with External Audit

Discuss the role of internal audit in corporate governance and risk management.

You're reporting an error for "AA – Nov 2020 – L2 – Q4b – Internal Audit and Its Relationship with External Audit"

AA – Dec 2022 – L2 – Q2a – Internal Audit and Its Relationship with External Audit

Describes the five key roles external auditors play in corporate governance to ensure the transparency and reliability of financial statements.

You're reporting an error for "AA – Dec 2022 – L2 – Q2a – Internal Audit and Its Relationship with External Audit"

AA – May 2017 – L2 – Q2b – Internal Audit and Its Relationship with External Audit

Distinction between internal audit and internal check.

You're reporting an error for "AA – May 2017 – L2 – Q2b – Internal Audit and Its Relationship with External Audit"

AA – May 2017 – L2 – Q2a – Internal Audit and Its Relationship with External Audit

Explanation of the role of internal audit in risk management.

You're reporting an error for "AA – May 2017 – L2 – Q2a – Internal Audit and Its Relationship with External Audit"

AA – Nov 2016 – L2 – Q2d – Internal Audit and Its Relationship with External Audit

Compare and contrast the roles of internal and external auditors.

You're reporting an error for "AA – Nov 2016 – L2 – Q2d – Internal Audit and Its Relationship with External Audit"

AA – Aug 2022 – L2 – Q4b – Internal Audit and Its Relationship with External Audit

Identifies measures that can be implemented to ensure the independence of the internal audit function.

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

AA – May 2021 – L2 – Q4c – Internal Audit and Its Relationship with External Audit

Explain limitations of the Internal Audit Unit and steps to ensure independence.

You're reporting an error for "AA – May 2021 – L2 – Q4c – Internal Audit and Its Relationship with External Audit"

AA – Nov 2021 – L2 – Q1a – Internal Audit and its Relationship with External Audit

Explains two advantages and three disadvantages of outsourcing an internal audit function to an external company.

You're reporting an error for "AA – Nov 2021 – L2 – Q1a – Internal Audit and its Relationship with External Audit"

AA – Nov 2018 – L2 – Q2a – Internal Audit and Its Relationship with External Audit

Discusses the advantages and disadvantages of outsourcing the internal audit function compared to maintaining an in-house team.

You're reporting an error for "AA – Nov 2018 – L2 – Q2a – Internal Audit and Its Relationship with External Audit"

AA – Mar 2024 – L2 – Q5b – Internal Audit and Its Relationship with External Audit

Recommend internal control procedures for cheque payments and petty cash systems for Automaga Ltd.

You're reporting an error for "AA – Mar 2024 – L2 – Q5b – Internal Audit and Its Relationship with External Audit"

AA – Mar 2024 – L2 – Q4b – Internal Audit and Its Relationship with External Audit

Explain the differences between internal and external auditors in fraud prevention, detection, and reporting responsibilities.

You're reporting an error for "AA – Mar 2024 – L2 – Q4b – Internal Audit and Its Relationship with External Audit"

Our offerings

Contact Info

Customer

Get In Touch

admin