Northstar Holdings Ltd is a diversified company operating in healthcare, logistics, retail, energy and technology. The board and senior management are strengthening the organisation’s internal audit and risk-management processes.

Required:

Match each scenario with the most appropriate term.

Since organisational performance encompasses effectiveness, it also encompasses efficiency and economy.

Required:

For each of the input and output processes described, indicate whether the process relates to the economy, efficiency or effectiveness of the process.

Required:

State whether the following statement is true or false:

Risk

assessments should be updated regularly because organisational risks may change

over time due to changes in operations, technology and the external

environment.

Required:

State whether the following statement is true or false:

A

risk-based internal audit approach focuses primarily on detecting fraud after

it has occurred rather than evaluating whether key organisational risks are

adequately managed.

Required:

State whether the following statement is true or false.

The main

purpose of the IAF is to evaluate the organisation’s compliance with relevant

regulations and guidelines, be it internal or external.

State whether the following statement is true or false:

The internal audit activity customarily has a dual relationship with management and the audit committee. This means that the accuracy of engagement communication should be verified with management and the internal audit activity should then report to management and the audit committee.

State whether the following statement is true or false:

An important purpose of the internal audit function is to objectively assess the effectiveness of risk management and internal controls, providing management with insights to enhance governance and accountability.

Required:

The internal audit charter is one of the more important factors positively affecting the internal audit activity's independence.  

Required:

Which of the following is least likely to be part of the charter?

An auditor is finalising a report and wants to ensure it remains focused and useful. They must decide what type of content could weaken the quality of the report.

Required:

Which of the following practices should auditors avoid when compiling an internal audit report to maintain its effectiveness and professionalism?