Audit and Assurance Exam Topics - AUDIT AND ASSURANCE - Seminar 7 notes

Module: Audit and Assurance


Seminar 7 – Exam Topics


Exam Topics
Internal Controls – you will be examined on all aspects of it.

 A good internal control environment = SOAP SPAM = segregation of duties,
organisational controls (things like an organisational chart used by an
organisation on a day-to-day basis – the chart shows the hierarchy in the
organisation; job description; password), approvals and authorisations,
physical controls (card key access, door with a keypad, lock on door),
supervision, personnel (having the people in the right job), arithmetic (about
numbers adding up; are the numbers correctly valued?), management
(management interference in the day-to-day running of the business).

 SOAP SPAM = will help you identify weaknesses in a scenario

 SOAP SPAM = is what’s going to help you make recommendations

 Internal Controls are tools used by management to ensure assets are kept
securely

 To ensure fraudulent activities are limited

 It’s the first part of where your audit looks at

 The questions you get will be scenario-based where the questions will pose a
number of weaknesses for you to pick out.

 You will need to explain why it’s a weakness and how the weakness can be
fixed. Sometimes the internal controls can be linked to a process and you will
be asked to identify the weaknesses.

 You might be asked to talk about the limitations of internal controls.


Ethics & Independence
 Professional competence and due care

 Confidentiality

 Integrity

 Objectivity