MF0013 & INTERNAL AUDIT AND CONTROL
DRIVE Spring 2015
PROGRAM/SEMESTER MBADS (SEM 3/SEM 5)
MBAFLEX/ MBAN2 (SEM 3)
PGDFMN (SEM 1)
SUBJECT CODE &
NAME
MF0013 & INTERNAL AUDIT AND CONTROL
Q.1: Distinguish between secretarial audit and cost audit. Write the advantages and
disadvantages of continuous and periodical audit.
Difference between secretarial audit and cost audit
Advantages and disadvantages of continuous and periodical audit
ANS:
Difference between secretarial audit and cost audit:
secretarial audit | cost audit |
Q.2: Write the characteristics of internal check system. Explain the essentials of effective internal auditing.
Characteristics of internal check system
Essentials of effective internal auditing
ANS:
Characteristics of internal check system:
The characteristics of a good internal check system are:
- Proper segregation of duties.
- Automatic checking of a job.
Q.3: The audit firm follows certain policies and procedures. Explain the quality control policies adopted by an audit firm.
Explanation of all the 12 points under audit firm
ANS:
The firm’s system of quality control should include policies and procedures addressing each of the following elements:
(a) Leadership responsibilities for quality within the firm.
Q.4: Explain the basic principles of governing internal control
Basic principles of governing internal control
ANS:
Basic principles of governing internal control:
The basic principles governing internal control are as follows:
- A proper system, preferably in writing, must be implemented so that origination, recording and
Q.5: Discuss the specific problems of Electronic Data Processing (EDP) relating to internal control.
Explanation of all problems of EDP
ANS:
Explanation of all problems of EDP:
The implementation of internal control in an EDP system, give rise to the following problems:
- Separation of duties: The responsibility for initiating transactions, recording transactions and custody
Q.6: Explain the factors for having the effective internal control system for a bank.
Explanation of various aspects of having the effective internal control system.
ANS:
Explanation of various aspects of having the effective internal control system:
An effective internal control system for a bank should consider the following aspects:
- Control environment: Control environment is the foundation of an internal control system. It includes and reflects the factors that influence the control consciousness of its people. As per Auditing and