AUI2601 - Internal Auditing: Theory and Principles

Internal Auditing: Theory & Principles – AUI2601

Oct/Nov 2020 | Semester 2

21 October 2020

Megan Geweld

Student number: 41211510

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Question 1

1.1 C

1.2 B

1.3 D

1.4 C

1.5 D

1.6 B

1.7 C

1.8 D

1.9 A

1.10 B



Question 2

2.1 These are the steps to be followed in planning process:

 Obtain background information of audit area.
 Identify the engagement objectives to be achieved.
 Consider the audit risk.
 Determine the allocation of the engagement resources.
 Compile the detailed engagement programme for the audit.



2.2 Controls:

(1) Directive

(2) Preventative

(3) Detective

(4) Preventative

(5) Preventative

(6) Preventative

, 2.3

Control
number Audit Procedure(a) Audit Evidence (b)
Observe the process or procedure
1 being followed to record payments Occurrence of the transactions

Inspect a copy of the previous bank Existence of reconciliations
reconciliation and confirm whether performed by the Accountant also
2 same is signed by the supervisor. signed off by the Supervisor.
Arrange to observe an instance
where wages are being payed out Evidence of whether employees
to see if the employees do provide are providing proof of
identification and sign identification and wage
acknowledgement of receipt of acknowledgement receipt in the
3 wage in the Payroll register. payroll register.

The Auditor gathers evidence of
Inspect a sample of a signed whether or not exception reports
4 exception report. are being reviewed as stipulated.

Inspect a sample of Cheque Auditer ascertains whether the
signatories and confirm if it is cheque signatories are stamped or
crossed or cancelled it being used crossed to avoid the possibility of
5 for payment again. duplicate or double payments.
Observe when employees are
entering the place of work that they Auditer gather evidence that
are in fact accessing the workplace around the existence and
by scanning finger at the biometric effectiveness of the control in
6 scanner. question.


2.4 The purpose of audit working papers are as follows:

 They aid planning performance and review of engagements
 Provide the principle support for engagement results.
 Support the accuracy and completeness of the work performed



Question 3

3.1

Attribute standard – Standards that address the characteristics of organisations and parties performing internal audit
activities

Here are the examples of such standards

 Nature of the work
 Engagement planning
 Performing the engagement