SMU MBA ASSIGNMENTS

Answer :

Internal Audit The Governing Body of each agency is responsible for establishing the internal audit function and the head of internal audit is primarily accountable to the Governing Body. The head of internal audit will report to the Audit Committee on their function, and to the chief executive (or to an officer nominated by the chief executive) for administrative purposes such as for authorisation of expenditure and approval of travel and leave.

Guideline

The governing body is responsible for determining the need for and scope of internal audit activity. It may delegate this responsibility to the Audit Committee. The head of internal audit ideally would have no executive or managerial powers, authorities, functions or duties except those relating to the management of the internal audit function. The head of internal audit should be responsible to an individual in the organisation with sufficient authority to promote independence and to ensure broad audit coverage, adequate consideration of engagement communications and appropriate action on engagement recommendations.

Each agency must establish an internal audit function where it is cost effective to do so.

Guideline

An internal audit function should be established, unless the costs of such a function outweigh the benefits to be derived. This may be the case where size, risks, complexity, geographical distribution or materiality do not justify the associated cost. In determining the need for an internal audit function, consider:

the size and scale of the organisation;

the organisation’s complexity / diversity;

the organisation’s overall risk profile;

the history of past issues and incidents;

cost benefit; and

the existence of alternative mechanisms to provide adequate assurance on compliance and the operation of internal controls. If an internal audit function is not warranted the governing body must take alternative steps to obtain an appropriate level of assurance from an equivalent function. Alternative in-house assurance activities and / or compliance functions that are sufficiently robust and rigorous may

be regarded as an “equivalent function”.

The need for an internal audit function should be reviewed annually.

 

b. Code of ethics for internal auditor

Q2. Comment on “An auditor is a watch dog and not a blood hound’.

 

Q3. List out the factors that influence the control environment prescribed by SA 400: Risk assessment and internal control.

 

Q4. If you are an internal auditor of a branch of an insurance company, how do you prepare internal control scheme.

 

5. Explain the appraisal of accounting system and related internal control.

Q6. Mention some of the general EDP controls.