AUI2601
INTERNAL AUDITING: THEORY AND PRINCIPLES
PAST EXAM PACK QUESTIONS AND ANSWERS
(2020 – 2014)
2020 MAY/JUNE EXAM QUESTIONS AND ANSWERS
2020 SUMMARISED NOTES
DISCLAIMER: Extreme care has been used to create this document, however the contents are provided “as is” without any
representations or warranties, express or implied. This document is to be used for comparison, research and reference
purposes ONLY. Directly submitting and/or reselling/ distribution / reproduction any part of this document is not permitted.
,AUI 2601 EXAM PACK
AUI2601 2020 MAY JUNE EXAM MEMO
QUESTION 1
1.1 A
1.2 C
1.3 C
1.4 C
1.5 D
1.6 B
1.7 C
1.8 B
1.9 D
1.10 A
QUESTION 2
2.1) Six aspects are
Independent and objective
Assurance and consulting
Add value and improve operations
Risk management proceSS
, Control process
Governance process
2.2
Assurance services are objective examinations of evidence for the purpose of
providing an independent assessment on governance, risk management, and
control processes for the organization. Examples include review engagement
and audit engagement.
Consulting services are advisory services whereby the auditor will be providing
help to management without assuming management’s responsibility.
2.3
Two disadvantages of reporting to the CEO are:
The CAE may somehow suffer undue influence from the CEO to remove
certain aspects from the report which the CEO feels answerable for.
The CEO is usually very busy, the CAE might find that he or she does not
receive the guidance and support necessary to perform his or her task
effectively. Because of this reason, the CEO may be considered to be not a
convenient person.
Dual reporting is the recommended reporting structure that is functionally
report to the audit committee and administratively, to the CEO.
2.4
Internal auditing can assist management in the following way :
Monitoring activities in order to assess efficiency and effectiveness
Identifying and minimizing risks
, Validating reports in order for reports to be in line with work
requirements
Protecting management in a technical field
Helping in the decision making process
2.5
Factor Internal audit External audit
Certification Certified Internal Auditor Chartered Accountant
Audit Covers all the External audit works primarily
Coverage organisation’s operations with those financial systems that
have a bearing on the final
accounts.
Organisational Internal audit can be an External audit is an external
structure external contractor or an contractor, never an employee of
in-house function. the company.
Objectives Internal audit forms an External audit expresses an
opinion opinion on whether the financial
statements as a whole are true ,fair
on the adequacy and
, reliable and not misstated
effectiveness
of systems of risk
management and internal
control.
2.6
INTERNAL AUDITING: THEORY AND PRINCIPLES
PAST EXAM PACK QUESTIONS AND ANSWERS
(2020 – 2014)
2020 MAY/JUNE EXAM QUESTIONS AND ANSWERS
2020 SUMMARISED NOTES
DISCLAIMER: Extreme care has been used to create this document, however the contents are provided “as is” without any
representations or warranties, express or implied. This document is to be used for comparison, research and reference
purposes ONLY. Directly submitting and/or reselling/ distribution / reproduction any part of this document is not permitted.
,AUI 2601 EXAM PACK
AUI2601 2020 MAY JUNE EXAM MEMO
QUESTION 1
1.1 A
1.2 C
1.3 C
1.4 C
1.5 D
1.6 B
1.7 C
1.8 B
1.9 D
1.10 A
QUESTION 2
2.1) Six aspects are
Independent and objective
Assurance and consulting
Add value and improve operations
Risk management proceSS
, Control process
Governance process
2.2
Assurance services are objective examinations of evidence for the purpose of
providing an independent assessment on governance, risk management, and
control processes for the organization. Examples include review engagement
and audit engagement.
Consulting services are advisory services whereby the auditor will be providing
help to management without assuming management’s responsibility.
2.3
Two disadvantages of reporting to the CEO are:
The CAE may somehow suffer undue influence from the CEO to remove
certain aspects from the report which the CEO feels answerable for.
The CEO is usually very busy, the CAE might find that he or she does not
receive the guidance and support necessary to perform his or her task
effectively. Because of this reason, the CEO may be considered to be not a
convenient person.
Dual reporting is the recommended reporting structure that is functionally
report to the audit committee and administratively, to the CEO.
2.4
Internal auditing can assist management in the following way :
Monitoring activities in order to assess efficiency and effectiveness
Identifying and minimizing risks
, Validating reports in order for reports to be in line with work
requirements
Protecting management in a technical field
Helping in the decision making process
2.5
Factor Internal audit External audit
Certification Certified Internal Auditor Chartered Accountant
Audit Covers all the External audit works primarily
Coverage organisation’s operations with those financial systems that
have a bearing on the final
accounts.
Organisational Internal audit can be an External audit is an external
structure external contractor or an contractor, never an employee of
in-house function. the company.
Objectives Internal audit forms an External audit expresses an
opinion opinion on whether the financial
statements as a whole are true ,fair
on the adequacy and
, reliable and not misstated
effectiveness
of systems of risk
management and internal
control.
2.6
