AUI3703 Assignment 2 (COMPLETE ANSWERS) Semester 1 2024 (773183)- DUE 24 April 2024
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AUI3703 Assignment 2
(COMPLETE ANSWERS)
Semester 1 2024
(773183)- DUE 24 April
2024 ;100% TRUSTED
workings,
ADMIN
[COMPANY NAME]
, QUESTION 1 15 marks Gas Ltd is a company that is responsible for refuelling
empty gas bottles. Gas Ltd has operations in various parts of the country. The
company conducts its business with a variety of customers from individual
households and small retailers to big manufacturing companies. Gas Ltd
recently established an internal audit activity. As the senior internal auditor,
you tasked one of the junior internal auditors to do a presentation to the senior
management outlining the role, purpose and authority of the internal audit
activity in the company. The junior internal auditor presented the following
statements, which he would like to include in his presentation, to you: 1. Risk
management, control and governance processes may be regarded as
effective if such processes are planned and designed in a manner that
provides reasonable assurance that all irregularities will be eliminated. 2.
Internal auditors may provide consulting services that add value and improve
an organisation’s operations. The performance of these services should be
consistent with the internal audit activity’s empowerment reflected in the
internal audit charter. 3. The internal audit activity customarily has a dual
relationship with management and the audit committee. This means that the
accuracy of engagement communication should be verified with management
and the internal audit activity should then report to management and the audit
committee. 4. Recommendations in audit reports may or may not actually be
implemented. The internal auditor has no role to play in this regard and follow-
up is the sole responsibility of management. 5. “To determine whether
document flow and the provision of management information throughout the
delivery department is optimised” is an audit objective that relates to the
efficiency of the process. 6. The two broad groupings of information systems
control activities are general controls and application controls. General
controls include controls for developing, modifying, and maintaining computer
programs. 7. The main purpose of the internal audit activity is to evaluate the
organisation’s compliance with relevant regulations and guidelines, be they
internal or external. 8. An internal audit carried out to determine whether an
entity is managing and controlling its resources economically, efficiently, and
effectively, would most likely be classified as a programme results audit. 4 9.
Performance evaluation, identifying opportunities to make improvements and
making suggestions to improve existing procedures and future actions can be
seen as the general objectives of operational auditing. 10. Pressure on
individuals, uncontrolled access to organisational assets and personality
disorders are all factors that could be prevented by a good internal control
system. REQUIRED Marks 1.1 Indicate for each of the statements listed
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