Audit Work On Trade Debtors/Sales: Ascertainment Of Correct Cut Off

Tweet The auditor will need to be satisfied of correct cut-off. Without a correct cut-of, sales can be overstated hence the need to perform the following cut off tests: 1.0 For the last invoices issued during the year and which have been included in the debtors; the goods have been despatched; the goods are not […]

Audit Evidence: Using Compliance Procedures For Audit Work

Tweet Append below are some notes pertaining to understand what are  Compliance Procedures:-  Compliance Procedure In Obtaining Audit Evidence    Compliance Procedures are tests designed to obtain reasonable assurance that those internal controls on which audit reliance is to be placed are in effect    The auditor needs to ensure that internal control exist  and […]

Suggested Terms Of Reference For Internal Audit

Tweet Append below are the recommendations from CIMA’s guideline re: A Framework For Internal Controls pertaining to the suggested terms of reference for an Internal Audit. Hopefully, below might be useful for those self-starters who wish to initiate terms of reference for their internal auditing role: Internal Audit’s Terms Of Reference Function 1.      Internal Audit […]

What Are The Advantages Or Benefits Of Having An Internal Audit Department?

Tweet The contemporary trend is to outsource the internal audit department. However, there are many benefits which we have to consider accruing from having an internal audit department. Major advantages Having An Internal Audit Department It dispenses the need to employ external consultants to act as internal auditors hence saving large sum of money. This […]

How/What Situations Can The Internal Auditor Assists The External Auditors

Tweet The internal auditors may assist external auditors in the following ways: Performing checks on perpetual inventory records Visiting branches or depots regularly Preparation of systems documentation such as flow-charts Regular review and testing of controls

Factors/Situations Where A Company Would Want To Expand Its Internal Audit Department

Tweet Factors which may contribute to the growth or expansion of internal auditing in an organization are: Increased size of business has brought a need for more sophisticated internal control systems which need to be constantly reviewed for adequacy and for correct operation Use of computers for data processing tends to mean that individual security […]

The Factors Or Circumstances Where External Auditors Can Rely On The Internal Audit Department/Internal Auditor

Tweet The following factors or circumstances where the external auditor can rely on the work of the internal auditor: The professional qualifications of the internal auditor both on competency and ethical grounds The adequacy of planning, control and documentation in the internal audit department The responsibility of the internal audit department, whether it be to […]

Ways Or How To Gauge/Assess The Effectiveness/Reliability Of An Internal Audit Department

Tweet Append below some of the ways to gauge the effectiveness or reliability of an Internal Audit Department: Status In Organization Structure/Chart & Access/Communication To Top Level Management The level of department and the level of management to which the internal auditor reports to. Generally, the higher the level the internal auditor reports means the […]