Introduction to Internal Audit
Master of Business Administration - MBA Semester 3
Subject Code – MF0013
Subject Name – Internal Audit and Control -4 Credits
(Book ID: B1211)
Assignment Set- 1 (60 Marks)
Q.1 Critically evaluate the qualities of an Auditor in the wake of recent scams
Ans:- What should be the qualities of Internal Audit Personnel? There is no universal answer to this question. We can only generalize about the qualities of internal Audit Personnel. It has been observed that internal auditors and independent auditors often belong to the same professional organization and are subject to the same professional regulations. Hence apart from professional qualification and experiences, the qualities of audit personnel should be same.
The Institute of Chartered Accountants of India (ICAI) has issued “SA-220-Quality Control for Audit Work” with an objective to establish standards on quality control as to the policies and procedures regarding of an audit firm for audit work generally, and procedures regarding the work delegated to assistants on an individual audit.
The standard is equally applicable to an internal audit department also. The head of internal audit department should regularly review the quality of audit work based on the standard mentioned below. Important extract of SA 220 are given below.
Important terms
a) “The Auditor” means the person with final responsibility for the audit.
b) “Audit Firm” mean either the partners of a firm providing audit services or sole practitioner providing audit services.
c) “Personnel” means all partners and professionals staff engaged in the audit practice of the firm.
d) “Assistant” means personnel involved in an individual audit other than the auditor.
Audit firm
1. The audit firm should implement quality control policies and procedures designed to ensure that all audits are conducted in accordance with the standards on auditing.
2. The objectives of the quality control policies to be adopted by an audit firm
Subject Code – MF0013
Subject Name – Internal Audit and Control -4 Credits
(Book ID: B1211)
Assignment Set- 1 (60 Marks)
Q.1 Critically evaluate the qualities of an Auditor in the wake of recent scams
Ans:- What should be the qualities of Internal Audit Personnel? There is no universal answer to this question. We can only generalize about the qualities of internal Audit Personnel. It has been observed that internal auditors and independent auditors often belong to the same professional organization and are subject to the same professional regulations. Hence apart from professional qualification and experiences, the qualities of audit personnel should be same.
The Institute of Chartered Accountants of India (ICAI) has issued “SA-220-Quality Control for Audit Work” with an objective to establish standards on quality control as to the policies and procedures regarding of an audit firm for audit work generally, and procedures regarding the work delegated to assistants on an individual audit.
The standard is equally applicable to an internal audit department also. The head of internal audit department should regularly review the quality of audit work based on the standard mentioned below. Important extract of SA 220 are given below.
Important terms
a) “The Auditor” means the person with final responsibility for the audit.
b) “Audit Firm” mean either the partners of a firm providing audit services or sole practitioner providing audit services.
c) “Personnel” means all partners and professionals staff engaged in the audit practice of the firm.
d) “Assistant” means personnel involved in an individual audit other than the auditor.
Audit firm
1. The audit firm should implement quality control policies and procedures designed to ensure that all audits are conducted in accordance with the standards on auditing.
2. The objectives of the quality control policies to be adopted by an audit firm