1. Explain audit control procedure?
Audit control procedures are policies and procedures in addition to control environment, (altitude,awareness and actions of directors and management regarding the internal control system) which the management has established to achieve the entity specific objectives.the mix of type of controls implemented by the management will depend on the control objectives and the size of the entity.
2. Explain internal quality audit?
If your organization is CMM level 5, It has some set of process, which needs to be followed. Now, audit happens internally to check if all the processes
are followed as per the rules set/ templates, proper frequency. During the audit, auditor asks questions to verify the same. If some set of processes are not followed, auditor gives NC (Non Compliance) for that, which should be rectified within 2 weeks time.
3. Described advantages and disadvantages of internal audit?
► Advantages of Internal Audit are following:
It is in-expensive.
No charted accounted is required to audit internally.
Errors will be removed before preparing financial statements.
There will not be any type of embarrassment in the society because errors have been removed.
Accounting staff will remain in pressure so record will remain update every time in the organization.
► Disadvantages are following:
Internal audit is not acceptable by the shareholder.
There can be errors in internal audit because he is not an auditor.
And there are some more.
4. Explain the Essential Of Internal Audit?
Planning is an essential feature of internal audit. The auditor can plan to check the accounting system. The plan may relate to accounting functions like purchase, sales, income, expenses and shares. The planning includes degrees of risk and extent of audit. It also states the nature of audit work. Controlling is an essential feature of internal audit. Auditor can examine the operations of accounting system. He can control audit work through audit program. The whole audit work is distributed among audit staff.
Recording is an essential feature of internal audit. The audit can record the facts and figures in order to express his views in the business activities. The audit note book and audit working papers are used to record the information. Independence is essential element of internal audit. The work of internal audit is done by an employee of the company. He must not be influenced by management. He must be free in developing audit program, audit investigation and audit reporting.
5. Explain an integrated audit?
The modern integrated audit approach combines elements of several traditional audit areas including financial, operational, and information technology.
6. How we can evaluate the internal control audit?
Compliance procedures are tests designed to obtain reasonable assurance that these internal controls on which audit reliance is to be placed are in effect. The auditor can test the functioning of the controls and not the transactions. He can check the exceptions and departure from suggested internal control. When there is strict supervisory control the staff can not digress from prescribed control procedures. Compliance procedures can be applied with the help of audit sampling.
The samples can be selected from various categories of transaction in order to test the control aspect. He can examine evidence through inspection of signature. He can apply re performance and observation techniques. He can check custodial control over assets. He can examine the segregation of duties. He can go through supervisory controls. The auditor can test all the items included in the sample. The compliance procedures can ensure the auditor that internal control exists. The control is operating effectively. The control has so operated throughout the period of intended reliance.
7. How does the internal audit differ from an external audit?
Internal audit nothing but the checking the product that you produced.
External audit is checking your product by your customer.
Here it means you may not find mistakes in your processes but a third man who comes and check the system he may see some deviations in the system and give suggestions for the improvements of the system.
8. What is new approach for integrated audits?
The modern approach permits one audit of an auditable entity with one comprehensive report.One additional benefit is that this approach assists in staff development and retention. This publication address the four basics phases of a modern integrated audit approach:
Planning
Evaluation
Testing
Reporting
This enclosed work program addressing each of these phases in standard workpaper format using MS Word to facilitation modification to each Audit Department?s standards and to complete each audit efficiently.
The work program contains over 50 steps required to complete an audit using this approach.
Intangible assets are those which we can't be seen like goodwill of the company.
Tangible Assets are those assets which we can see or touch like fixed asset ,machinery,etc.
