PART A
QUESTION 1
**1.1 Purpose of internal audit function in Jubilee Hospital:**
**Question 1.1:** Briefly describe the purpose of the internal audit function in Jubilee Hospital.
The internal audit function provides independent assurance that Jubilee Hospital's financial, operational,
and compliance processes are effective, efficient, and aligned with strategic objectives.
**1.2 Internal audit mission statement:**
**Question 1.2:** Formulate an internal audit mission statement for the newly established internal
audit function.
"To enhance and protect organizational value by providing risk-based, objective assurance, advice, and
insight, thereby supporting Jubilee Hospital's mission to deliver accessible, excellent healthcare."
PART B
**1.3 Definition of internal audit charter (GIAS):**
**Question 1.3:** Define the term internal audit charter as per the Global Internal Audit Standards
(GIAS).
An internal audit charter is a formal document that defines the internal audit function's purpose,
authority, responsibility, and position within the organization, outlining its mandate, scope, and
relationships with stakeholders.
**1.4 Three stages of risk-based auditing:**
, **Question 1.4:** Describe the three (3) stages involved in the implementation and ongoing operation
of risk-based auditing within Jubilee Hospital.
1. **Risk Assessment:** Identify and assess risks across the hospital.
2. **Audit Planning:** Prioritize audits based on risk assessment and develop audit plans.
3. **Audit Execution and Monitoring:** Conduct audits, report findings, and monitor remediation.
**1.5 Audit risk components:**
**Question 1.5:** The internal audit team should consider audit risk when using a risk-based approach.
Describe audit risk by referring to the three risks that form part of the audit risk.
**Audit Risk:** The risk that the auditor expresses an inappropriate audit opinion when the financial
statements are materially misstated.
1. **Inherent Risk:** Risk of material misstatement or non-compliance without controls.
2. **Control Risk:** Risk that controls fail to prevent or detect misstatements.
3. **Detection Risk:** Risk that auditors fail to detect material misstatements.
**1.6 Two types of internal audit services:**
**Question 1.6:** Name and describe two (2) types of internal audit services that the internal audit
function can provide to Jubilee Hospital and provide an example of each type of service.
1. **Assurance Services:** Objective evaluations of governance, risk, and control processes (e.g.,
examining control procedures, reviewing record reliability).
2. **Consulting Services:** Advisory activities to improve processes (e.g., providing training,
recommending improvements).
**1.7 Classification of services:**
QUESTION 1
**1.1 Purpose of internal audit function in Jubilee Hospital:**
**Question 1.1:** Briefly describe the purpose of the internal audit function in Jubilee Hospital.
The internal audit function provides independent assurance that Jubilee Hospital's financial, operational,
and compliance processes are effective, efficient, and aligned with strategic objectives.
**1.2 Internal audit mission statement:**
**Question 1.2:** Formulate an internal audit mission statement for the newly established internal
audit function.
"To enhance and protect organizational value by providing risk-based, objective assurance, advice, and
insight, thereby supporting Jubilee Hospital's mission to deliver accessible, excellent healthcare."
PART B
**1.3 Definition of internal audit charter (GIAS):**
**Question 1.3:** Define the term internal audit charter as per the Global Internal Audit Standards
(GIAS).
An internal audit charter is a formal document that defines the internal audit function's purpose,
authority, responsibility, and position within the organization, outlining its mandate, scope, and
relationships with stakeholders.
**1.4 Three stages of risk-based auditing:**
, **Question 1.4:** Describe the three (3) stages involved in the implementation and ongoing operation
of risk-based auditing within Jubilee Hospital.
1. **Risk Assessment:** Identify and assess risks across the hospital.
2. **Audit Planning:** Prioritize audits based on risk assessment and develop audit plans.
3. **Audit Execution and Monitoring:** Conduct audits, report findings, and monitor remediation.
**1.5 Audit risk components:**
**Question 1.5:** The internal audit team should consider audit risk when using a risk-based approach.
Describe audit risk by referring to the three risks that form part of the audit risk.
**Audit Risk:** The risk that the auditor expresses an inappropriate audit opinion when the financial
statements are materially misstated.
1. **Inherent Risk:** Risk of material misstatement or non-compliance without controls.
2. **Control Risk:** Risk that controls fail to prevent or detect misstatements.
3. **Detection Risk:** Risk that auditors fail to detect material misstatements.
**1.6 Two types of internal audit services:**
**Question 1.6:** Name and describe two (2) types of internal audit services that the internal audit
function can provide to Jubilee Hospital and provide an example of each type of service.
1. **Assurance Services:** Objective evaluations of governance, risk, and control processes (e.g.,
examining control procedures, reviewing record reliability).
2. **Consulting Services:** Advisory activities to improve processes (e.g., providing training,
recommending improvements).
**1.7 Classification of services:**
