AUI2601 Assessment 02
Question 1
Part A
1.1. To enhance and protect organisational value by providing risk based and
objective assurance, advice, and insight.
1.2. An effective internal audit activity should provide management with:
• Confirmation of the effective operation of the established internal control
system.
• Assurance that the management processes are adequate to identify and assess
significant risks.
• Credible processes for feedback on risk management and assurance.
• Objectiviteconfirmation that the board receives the right quality of assurance
and information from management. Page 52 study guide
Part B
1.3.
• The internal audit function will not be able to audit the finance division
objectively and independently as they report to the chief financial officer
• The internal audit function should be a separate division from other functions to
ensure organisational independence.
• John Dlamini reports to the CFO for functional and administrative matters, the
internal audit function will not be able to audit the Finance division objectively
and independently.
1.3. 1110 Organizational Independence
• The chief audit executive must report to a level within the organization that
allows the internal audit activity to fulfill its responsibilities. The chief audit
executive must confirm to the board, at least annually, the organizational
independence of the internal audit activity.
, Question 2
No. Permissible/ Not Reference to IPPF Reason
permissible
2.1. Not permissible Objectivity -Shall disclose all The potential fraud committed by
material facts known to them the manager is a critical matter
that, if not disclosed, may that needs to be disclosed,
distort the irrespective of whether the
reporting of activities under
questionable expenses are
review.
repaid or not.
2.2 Not permissible Competency - Shall By cancelling all the
continually improve their training, the chief audit
proficiency and the executive is failing
effectiveness and quality of
to ensure the required
their service
proficiency of the internal
audit staff.
2.3 Not permissible Objectivity The internal auditor manager ‘s
Shall not accept anything that acceptance of the gift voucher
may impair or be presumed to from the COO could be
impair their professional perceived as impairment of their
judgment. professional judgement.
2.4 Permissible Competency Mpho's volunteer work as a
Internal auditors shall engage consultant to a local hospital,
in those outside of work hours and to
services for which they have Green Ltd, It will not
the bring the employer or the
necessary knowledge skills internal auditing
and profession into disrepute
experience.
2.5 Not permissible Integrity Sal failed to his work with
Shall perform their work honesty, diligence and
with honesty, diligence and responsibility He is
responsibility. supposed to recalculate
the reorder quantities to
verify whether the
calculations were
performed correctly
Question 1
Part A
1.1. To enhance and protect organisational value by providing risk based and
objective assurance, advice, and insight.
1.2. An effective internal audit activity should provide management with:
• Confirmation of the effective operation of the established internal control
system.
• Assurance that the management processes are adequate to identify and assess
significant risks.
• Credible processes for feedback on risk management and assurance.
• Objectiviteconfirmation that the board receives the right quality of assurance
and information from management. Page 52 study guide
Part B
1.3.
• The internal audit function will not be able to audit the finance division
objectively and independently as they report to the chief financial officer
• The internal audit function should be a separate division from other functions to
ensure organisational independence.
• John Dlamini reports to the CFO for functional and administrative matters, the
internal audit function will not be able to audit the Finance division objectively
and independently.
1.3. 1110 Organizational Independence
• The chief audit executive must report to a level within the organization that
allows the internal audit activity to fulfill its responsibilities. The chief audit
executive must confirm to the board, at least annually, the organizational
independence of the internal audit activity.
, Question 2
No. Permissible/ Not Reference to IPPF Reason
permissible
2.1. Not permissible Objectivity -Shall disclose all The potential fraud committed by
material facts known to them the manager is a critical matter
that, if not disclosed, may that needs to be disclosed,
distort the irrespective of whether the
reporting of activities under
questionable expenses are
review.
repaid or not.
2.2 Not permissible Competency - Shall By cancelling all the
continually improve their training, the chief audit
proficiency and the executive is failing
effectiveness and quality of
to ensure the required
their service
proficiency of the internal
audit staff.
2.3 Not permissible Objectivity The internal auditor manager ‘s
Shall not accept anything that acceptance of the gift voucher
may impair or be presumed to from the COO could be
impair their professional perceived as impairment of their
judgment. professional judgement.
2.4 Permissible Competency Mpho's volunteer work as a
Internal auditors shall engage consultant to a local hospital,
in those outside of work hours and to
services for which they have Green Ltd, It will not
the bring the employer or the
necessary knowledge skills internal auditing
and profession into disrepute
experience.
2.5 Not permissible Integrity Sal failed to his work with
Shall perform their work honesty, diligence and
with honesty, diligence and responsibility He is
responsibility. supposed to recalculate
the reorder quantities to
verify whether the
calculations were
performed correctly
