The internal audit activity adds value to the organisation when it provides objective and relevant assurance and advisory activities, and contributes to the effectiveness and efficiency of governance, risk management and control processes.

Required:

Complete the following statement: Governance, risk management and control processes may be regarded as effective if such processes are planned and designed in a manner that provides reasonable assurance that...

An employee with access to the payroll system creates fictitious employees and processes salaries into their own bank account. Weak internal controls made this possible.

Required:

Which element of the fraud triangle is BEST illustrated in this scenario?

After completing an audit, management agreed to implement several recommendations to improve internal controls and reduce risks. A few months later, the internal auditor returns to assess whether these corrective actions have been properly implemented and are working as intended.

Required:

Which one of the following alternatives best describes the role of the internal auditor when he or she follows up on the implementation of audit recommendations?

The mission statement of an organisation is a clearly worded, concise statement of what the organisation is trying to achieve, how it intends to achieve it, and why.

Required:

As part of an operational audit, you are required to evaluate the company's mission statement. Which one of the following steps would you take when evaluating the mission statement?

An internal auditor has been asked to assess whether a manufacturing plant is operating efficiently and using its resources optimally. The auditor must decide which audit procedure will best evaluate production performance, resource utilisation, and operational effectiveness.

Required:

Which one of the following audit procedures is the most appropriate to use when one wants to determine the efficiency of a manufacturing plant?

Three risks need to be considered when using a risk-based audit approach. They are inherent risk, control risk and detection risk, which are collectively known as audit risk.

Required:

Complete the following statement: During the performance of an internal audit engagement, audit risk can best be described as the risk that the internal auditor ...

An internal auditor found that there was no segregation of duties in the distribution department. The clerk working in the distribution department is responsible for processing orders, organising deliveries and allocating payments. This situation was also included in the final report of the previous engagement performed at the distribution department. 

Required:

Which of the following alternatives indicate the action that should be taken by the internal auditor.

Internal auditors may provide advisory services that add value and improve an organisation's operations. 

Required:

Complete the following statement: The performance of advisory services ...

An information security policy expresses a general commitment, direction or intention by management to safeguard information assets.

Required:

Allocate each of the activities to the correct pillar of the security policy.