- 10 Marks
CSEG – Nov 2015 – L2 – Q3a – Internal control and audit
Explain the composition and functions of an Audit Committee in corporate governance.
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Topic: Internal control and audit
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500
+ past questions and counting.
- 20 Marks
CSEG – Nov 2018 – L2 – Q3 – Corporate governance framework | Internal control and audit
Discuss the role and responsibilities of the audit committee in relation to external audit and internal controls, and suggest changes to address internal control failures.
Question
ABB Bank Ltd (ABB Ltd) is a listed company. It has been given a substantial fine by the Central Bank for serious breaches of the banking regulations and, in the same month, the bank reported that it had suffered large losses because of unauthorized dealings in financial derivatives by a manager in its treasury department. The company’s reported profits for the previous financial year were overstated because of these losses.
The chairman of the audit committee of ABB Ltd has resigned, accepting responsibility for failures by the committee. A newly-appointed director has been made chairman of the audit committee. He has called a meeting with you, the Finance Director. The purpose of the meeting is to review financial reporting and internal control, with a view to making recommendations to the board. ABB Ltd does not have a strong internal audit function, and the company has been using the same firm of external auditors since it acquired its listing 8 years ago.
Required:
a) Explain the role and responsibilities of the audit committee of ABB Ltd with regards to:
i) The external audit of the company’s financial statements; and (6 marks)
ii) The internal control system and internal audit function. (6 marks)
b) In relation to the possible failures in internal controls that have occurred, suggest FOUR (4) changes that might be recommended to the board at the next board meeting. (8 marks)
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- Tags: Audit Committee, External audit, Financial Reporting, Fraud, Governance, Internal Audit, Internal Control
- Level: Level 2
- Topic: Corporate governance framework, Internal control and audit
- Series: NOV 2018
- 10 Marks
CSEG – May 2019 – L2 – Q6a – Internal control and audit
Evaluate the objectives the Board of Events Tech seeks to achieve by establishing an internal audit department.
Question
Events Tech is a growing media company that specializes in technological solutions for events planning. Events Tech has recently established an internal audit department, and the Board is keen for this new department to cover certain broad areas of the organization and add value to the organization.
Required:
Evaluate FIVE (5) objectives the Board of Events Tech seeks to achieve by establishing an internal audit department.
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- Tags: Governance, Internal Audit, Objectives, Organizational Control, Risk Management
- Level: Level 2
- Topic: Internal control and audit
- Series: MAY 2019
- 10 Marks
CSEG – Nov 2015 – L2 – Q3a – Internal control and audit
Explain the composition and functions of an Audit Committee in corporate governance.
Find Related Questions by Tags, levels, etc.
- 20 Marks
CSEG – Nov 2018 – L2 – Q3 – Corporate governance framework | Internal control and audit
Discuss the role and responsibilities of the audit committee in relation to external audit and internal controls, and suggest changes to address internal control failures.
Question
ABB Bank Ltd (ABB Ltd) is a listed company. It has been given a substantial fine by the Central Bank for serious breaches of the banking regulations and, in the same month, the bank reported that it had suffered large losses because of unauthorized dealings in financial derivatives by a manager in its treasury department. The company’s reported profits for the previous financial year were overstated because of these losses.
The chairman of the audit committee of ABB Ltd has resigned, accepting responsibility for failures by the committee. A newly-appointed director has been made chairman of the audit committee. He has called a meeting with you, the Finance Director. The purpose of the meeting is to review financial reporting and internal control, with a view to making recommendations to the board. ABB Ltd does not have a strong internal audit function, and the company has been using the same firm of external auditors since it acquired its listing 8 years ago.
Required:
a) Explain the role and responsibilities of the audit committee of ABB Ltd with regards to:
i) The external audit of the company’s financial statements; and (6 marks)
ii) The internal control system and internal audit function. (6 marks)
b) In relation to the possible failures in internal controls that have occurred, suggest FOUR (4) changes that might be recommended to the board at the next board meeting. (8 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Audit Committee, External audit, Financial Reporting, Fraud, Governance, Internal Audit, Internal Control
- Level: Level 2
- Topic: Corporate governance framework, Internal control and audit
- Series: NOV 2018
- 10 Marks
CSEG – May 2019 – L2 – Q6a – Internal control and audit
Evaluate the objectives the Board of Events Tech seeks to achieve by establishing an internal audit department.
Question
Events Tech is a growing media company that specializes in technological solutions for events planning. Events Tech has recently established an internal audit department, and the Board is keen for this new department to cover certain broad areas of the organization and add value to the organization.
Required:
Evaluate FIVE (5) objectives the Board of Events Tech seeks to achieve by establishing an internal audit department.
Find Related Questions by Tags, levels, etc.
- Tags: Governance, Internal Audit, Objectives, Organizational Control, Risk Management
- Level: Level 2
- Topic: Internal control and audit
- Series: MAY 2019