Internal Audits – NBC Institute

AA – Nov 2016 – L2 – Q1 – Internal Audits

This question addresses internal audit functions, the differences between internal and external auditors, outsourcing internal audit, and risk categories considered by internal auditors.

Question

KEMTA Nigeria Limited is a private electrical and mechanical engineering company. The company is one of the major players in the provision of cutting-edge engineering construction services in the Nigerian electrical, mechanical, and communication engineering industry. The company has sites in all 36 States of the Federation, including Abuja. They also work for major financial institutions, educational institutions, Federal, State, and Local Governments. The company has over 500 professionals, skilled, and unskilled workers on its payroll.

You have been the auditor of the company for the past five years. During your audit, you observed some weaknesses in the internal control system of the company. Your review of the domestic reports showed that your firm has been recommending the establishment of an internal audit department for the past three years. However, you observed that the Managing Director is not favorably disposed to this idea, seeing it as an additional cost to the company. He requested to know more about outsourcing the internal audit department.

Required:
a) State and explain the purpose and functions of internal audit in an organisation. (5 Marks)
b) Enumerate the fundamental differences between the internal and external auditors. (10 Marks)
c) Present:
i) The main reasons for outsourcing internal audit. (3 Marks)
ii) The benefits of outsourcing. (2 Marks)
iii) Possible problems of outsourcing. (4 Marks)
d) Identify and explain the THREE main categories of risks usually considered by internal auditors. (6 Marks)

Answer

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Tags: External audit, Internal Audit, Internal Control, Outsourcing, Risk Categories
Level: Level 2

Topic: Internal Audits
Series: NOV 2016

AA – Nov 2020 – L2 – Q4 – Internal Audits

Differentiate between internal and external audit, list internal auditors' activities, justify the need for internal audits, and explain measures to protect auditor independence.

Question

Range Nigeria Limited is a large private company, with a financial year end of March 31, 2020, and has been an audit client of your firm for several years. The board of directors has asked your firm if they would be able to provide internal audit services to the company.

Required:
a. Differentiate between internal and external audits. (6 Marks)
b. List the activities of internal auditors. (4 Marks)
c. Justify the need for internal audits. (4 Marks)
d. Explain the measures that can be taken to protect the independence of auditors, given that auditors are expected to be independent, including internal audit. (6 Marks)

Answer

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Tags: External audit, Independence, Internal Audit
Level: Level 2

Topic: Internal Audits
Series: NOV 2020

AA – Nov 2021 – L2 – Q3 – Internal Audits

Discuss audit considerations for Youthplus, a Not-for-Profit Organisation.

Question

Youthplus is a Not-for-Profit Organisation (NFPO) established by well-meaning Nigerians. The aims and objectives of the NFPO include raising funds to assist youth corpers who, after their service, are unable to secure employment, to start small-scale businesses instead of waiting for white-collar jobs that are not in existence. NFPO solicits funds from the public, private, and foreign organisations. Youthplus has been in existence for five years, and your firm has been appointed as their auditors.

Required:
What factors would you put into consideration when carrying out the audit of Youthplus in the following areas?
a. Planning (4 Marks)
b. Risk (4 Marks)
c. Internal control (4 Marks)
d. Audit evidence (4 Marks)
e. Reporting (4 Marks)

Answer

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Tags: Audit evidence, Audit Planning, Internal Control, NFPO, Reporting, Risk Assessment, Youthplus
Level: Level 2

Topic: Internal Audits
Series: NOV 2021

AA – Nov 2018 – L2 – Q7 – Internal Audit

Explains internal audit, identifies weaknesses in audit structure, and outlines the differences between internal and external auditors.

Question

Good Weather Nigeria Plc is a company engaged in the business of manufacturing detergents with an annual turnover of N7 billion. It carries out its operations from six locations: Abuja, Enugu, Benin, Port-Harcourt, and Jos, with its head office in Lagos. The company has an internal audit function with three staff. The Chief Internal Auditor was recruited by the Executive Finance Director to facilitate a good working relationship between the finance and audit functions. All the staff in the unit are graduates and members of the Institute of Chartered Accountants of Nigeria (ICAN). The staff of internal audit have been in the unit for over eight years. The Chief Internal Auditor reports to the Executive Finance Director.

Required:
a. Explain the term “internal audit.”
(2 Marks)

b. Identify and explain the weaknesses in the above scenario.
(8 Marks)

c. Enumerate the differences between the roles of an internal auditor and an external auditor.
(5 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Committee, Auditor Differences, Auditor Independence, Internal Audit
Level: Level 2

Topic: Internal Audits
Series: NOV 2018

AA – Nov 2016 – L2 – Q1 – Internal Audits

This question addresses internal audit functions, the differences between internal and external auditors, outsourcing internal audit, and risk categories considered by internal auditors.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: External audit, Internal Audit, Internal Control, Outsourcing, Risk Categories
Level: Level 2

Topic: Internal Audits
Series: NOV 2016

AA – Nov 2020 – L2 – Q4 – Internal Audits

Differentiate between internal and external audit, list internal auditors' activities, justify the need for internal audits, and explain measures to protect auditor independence.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: External audit, Independence, Internal Audit
Level: Level 2

Topic: Internal Audits
Series: NOV 2020

AA – Nov 2021 – L2 – Q3 – Internal Audits

Discuss audit considerations for Youthplus, a Not-for-Profit Organisation.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit evidence, Audit Planning, Internal Control, NFPO, Reporting, Risk Assessment, Youthplus
Level: Level 2

Topic: Internal Audits
Series: NOV 2021

AA – Nov 2018 – L2 – Q7 – Internal Audit

Explains internal audit, identifies weaknesses in audit structure, and outlines the differences between internal and external auditors.

Question

Required:
a. Explain the term “internal audit.”
(2 Marks)

b. Identify and explain the weaknesses in the above scenario.
(8 Marks)

c. Enumerate the differences between the roles of an internal auditor and an external auditor.
(5 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Committee, Auditor Differences, Auditor Independence, Internal Audit
Level: Level 2

Topic: Internal Audits
Series: NOV 2018

Topic: Internal Audits

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AA – Nov 2016 – L2 – Q1 – Internal Audits

This question addresses internal audit functions, the differences between internal and external auditors, outsourcing internal audit, and risk categories considered by internal auditors.

AA – Nov 2020 – L2 – Q4 – Internal Audits

Differentiate between internal and external audit, list internal auditors' activities, justify the need for internal audits, and explain measures to protect auditor independence.

AA – Nov 2021 – L2 – Q3 – Internal Audits

Discuss audit considerations for Youthplus, a Not-for-Profit Organisation.

AA – Nov 2018 – L2 – Q7 – Internal Audit

Explains internal audit, identifies weaknesses in audit structure, and outlines the differences between internal and external auditors.

AA – Nov 2016 – L2 – Q1 – Internal Audits

This question addresses internal audit functions, the differences between internal and external auditors, outsourcing internal audit, and risk categories considered by internal auditors.

AA – Nov 2020 – L2 – Q4 – Internal Audits

Differentiate between internal and external audit, list internal auditors' activities, justify the need for internal audits, and explain measures to protect auditor independence.

AA – Nov 2021 – L2 – Q3 – Internal Audits

Discuss audit considerations for Youthplus, a Not-for-Profit Organisation.

AA – Nov 2018 – L2 – Q7 – Internal Audit

Explains internal audit, identifies weaknesses in audit structure, and outlines the differences between internal and external auditors.

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AA – Nov 2016 – L2 – Q1 – Internal Audits

This question addresses internal audit functions, the differences between internal and external auditors, outsourcing internal audit, and risk categories considered by internal auditors.

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AA – Nov 2020 – L2 – Q4 – Internal Audits

Differentiate between internal and external audit, list internal auditors' activities, justify the need for internal audits, and explain measures to protect auditor independence.

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AA – Nov 2021 – L2 – Q3 – Internal Audits

Discuss audit considerations for Youthplus, a Not-for-Profit Organisation.

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AA – Nov 2018 – L2 – Q7 – Internal Audit

Explains internal audit, identifies weaknesses in audit structure, and outlines the differences between internal and external auditors.

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AA – Nov 2016 – L2 – Q1 – Internal Audits

This question addresses internal audit functions, the differences between internal and external auditors, outsourcing internal audit, and risk categories considered by internal auditors.

You're reporting an error for "AA – Nov 2016 – L2 – Q1 – Internal Audits"

AA – Nov 2020 – L2 – Q4 – Internal Audits

Differentiate between internal and external audit, list internal auditors' activities, justify the need for internal audits, and explain measures to protect auditor independence.

You're reporting an error for "AA – Nov 2020 – L2 – Q4 – Internal Audits"

AA – Nov 2021 – L2 – Q3 – Internal Audits

Discuss audit considerations for Youthplus, a Not-for-Profit Organisation.

You're reporting an error for "AA – Nov 2021 – L2 – Q3 – Internal Audits"

AA – Nov 2018 – L2 – Q7 – Internal Audit

Explains internal audit, identifies weaknesses in audit structure, and outlines the differences between internal and external auditors.

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