FALL-2015
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Master of
Business Administration - MBA Semester 3
MF0013-Internal
Audit & Control-4 Credits
(Book ID:
1733)
Assignment
(60 Marks)
Note: Answers
for 10 marks questions should be approximately of 400 words. Each question is
followed by evaluation scheme. Each Question carries 10 marks 6 X 10=60.
Q1. Describe & explain the term
auditing. “Personal qualities of an auditor are important for the successful
conduct of audit”. Comment
Answer. Auditing is defined as a systematic and
independent examination of data, statements, records, operations and
performances (financial or otherwise) of an enterprise for a stated purpose. In
any auditing the auditor perceives and recognizes the propositions before him
for examination, collects evidence, evaluates the same and on this basis
formulates his judgment which is communicated through his audit report.
Q2. Write the key objectives of a
good internal audit system. Narrate the points of dissimilarities b/w external
& internal audit.
Answer. Five
key objectives for in-demand internal auditors:
1. Looking
forward. One part of internal audit’s job is to test past transactions to
discover problems and control issues. As said it’s important also to look
forward, anticipate risks, and help navigate the potentially choppy waters on
the horizon.
The CAE can
structure audit work to have more relevance in the executive suite to assist
organizations with being profitable, providing good customer service, and
staying in compliance, Smiechewicz said.
Q3. Give the role of internal auditor
in the company management. List down the duties of auditor under section 581ZG.
Answer. Major roles and
responsibilities of internal audit function are:
Ø Evaluates and provides reasonable
assurance that risk management, control, and governance systems are functioning
as intended and will enable the organization’s objectives and goals to be met
Ø reports risk management issues and
internal controls deficiencies identified directly to the audit committee and provides
recommendations for improving the organization’s operations, in terms of both
efficient and effective performance
Ø evaluates
Q4. The effectiveness of the internal
control system can be ensured if the important aspects of the company’s
operations are kept in mind. Explain the characteristics of an effective
internal control system. Write the elements of internal control.
Answer. The
Characteristics of Effective Internal Control:
1. Control
Environment
The control
environment is the company's attitude toward internal controls. Known as
"tone-at-the-top," the control environment is a necessary condition
for effective internal control, because even the best-designed systems can be
thwarted if management overrides the controls that are in place.
Q5. Describe general EDP controls. Explain
the appraisal of accounting system & related internal control.
Answer. Electronic Data Processing
(EDP) can refer to
the use of automated methods to process commercial data. Typically, this uses
relatively simple, repetitive activities to process large volumes of similar
information. For example: stock updates applied to an inventory, banking
transactions applied to account and customer master files, booking and
ticketing transactions to an airline's reservation system, billing for utility
services.
Q6. Explain the internal control
system in insurance companies. Write down about the reporting internal control weakness.
Answer. INTERNAL
CONTROL:
¨Internal Control is a continuous set of
processes carried out by an entity’s board of directors, management and all
personnel, designed to provide reasonable assurance of:
•
Effectiveness and efficiency of operations.
•
Reliability of financial and non-financial information.
FALL-2015
Get solved
assignments at nominal price of Rs.125 each.
Any issues
mail us at: subjects4u@gmail.com or contact at
09882243490
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