Integrated Audits Interview Questions and Answers

1 :: Explain What are the importance of evaluating an internal audit department?

Significance of Internal Auditing:
Internal auditing refers to an assessment activity managed within a corporation as a check to the entity. Its main function is to monitor control within the corporation. The task of internal auditing is determined by organization itself, and its goals differ from those of the external auditor who is appointed to report independently. The depth and goals of internal auditing vary widely and depend on the volume and structure of the body and the requirements of its administration. Ordinarily, the importance of internal auditing can be seen by one or more of the following: 1.Implementing and monitoring of sufficient internal control. That is the duty of management that demands proper attention on a permanent basis. Internal auditors are ordinarily assigned definite task by management for reviewing controls, monitoring their function and suggesting improvements for them. 2.Inspection of monetary and operational information. This may include review of the means used to recognize, determine, categorize and report such information and definite inquiry into individual items as well as in depth testing of balances, transactions and procedures. 3.Review of the economy, effectiveness and efficiency of operations including non-financial controls of the corporation. 4.Review of fulfillment of laws, regulations and other external requirements and compliance with administration policies and commands.

0/5 Rating (0 vote)

Is This Answer Correct?    0 Yes 0 No

2 :: Explain statutory audit?

It is a compulsory audit done by a CA.
Finance Audit conduct by the CA to compliance the legal requirements of monitory issues.

0/5 Rating (0 vote)

Is This Answer Correct?    0 Yes 0 No

3 :: Tell us Before an audit processes?

► Make sure the authority of the audit team is established - this will increase the cooperation from auditees.
► Decide what areas of the company will be audited and the frequency of the audits. Prepare a yearly audit schedule and distribute.
► Develop an audit plan. Decide what other audit resources are needed - checklists, other auditors?
► Determine the purpose of the audit - is it to comply with government regulations, quality standards, internal procedures and systems? v Define the scope of the audit - is it an overview of the area being audited or is it to concentrate on a specific system within the area?
► Hold a meeting with the auditors to discuss the plan, purpose, and scope of the audit.
► Read the documents you will be auditing against. Know what they say. Develop questions to ask the auditors.
► Conduct an opening meeting with the auditees

0/5 Rating (0 vote)

Is This Answer Correct?    0 Yes 0 No

4 :: Tell me how to do an internal audit effectively?

With internal audit we always need to be careful of any manipulations within the company itself.Errors and frauds within the company cannot be denied /overlooked at any cost.

0/5 Rating (0 vote)

Is This Answer Correct?    0 Yes 0 No

5 :: What are different functions Of internal audit?

The function of internal audit is concerned with analysis of internal check. The internal audit can look into the duties of each employee. All employees are provided jobs on the basis of their abilities. The auditor can test the effectiveness of internal check. The function of internal audit is examining the application of legal requirements.

The accounts are prepared under certain legal frame work. Verification of accuracy is a function of internal audit. The accuracy of accounting books and records can be verified with the help auditing techniques. The audit techniques include inspection, observation, inquiry, confirmation, computation and review. An auditor can check the accuracy through these techniques.

Confirmation of liability is a function of internal auditor can determine the work done by every person. The carelessness or negligence on the part of worker is noted. The concerned person is given a chance to explain his position. If the reason is not justified, the liability is confirmed. The function of internal audit is to examine the assets protection. The proper record is to be maintained. The possession must be in the hands of senior officer. The assets are used for business only. There are proper purchase and disposal of these assets. The internal auditor can check that assets are protected.

0/5 Rating (0 vote)

Is This Answer Correct?    0 Yes 0 No