MF0013 &INTERNAL AUDIT AND CONTROL

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ASSIGNMENT

DRIVE	SPRING 2016
PROGRAM	MBA
SEMESTER	3
SUBJECT CODE & NAME	MF0013 &INTERNAL AUDIT AND CONTROL
BK ID	B1733
CREDITS	4
MARKS	60

Note: Answer all questions. Kindly note that answers for 10 marks questions should be approximately of 400 words. Each question is followed by evaluation scheme.

Question.1. Distinguish between Government audit and Specific audit. Explain types of Government And Specific Audit?

Answer:An internal audit is conducted by the permanent staff of the same office to detect weakness in system, procedures and for the improvement. But statutory audit is the act of checking books of accounts as per the provision of company act. Both of them check books of account, detect errors and frauds even though they have certain differences which are as follows:

Question.2. Write the similarity and dissimilarity of Internal and External Audit? Explain the Cooperation between external and internal auditor.

Answer:The term “Audit”, with the advancement of knowledge, has become a word that needs definition to understand what it means.

Of the most prevalent audit types are financial audit, which is usually called External Audit, and Internal Audit.

Question.3. The audit firm follows certain policies and procedures. Explain the quality control policies adopted by an audit firm.

Answer:Quality Review under the Chartered Accountants Act, 1949 is directed towards inspection/evaluation of audit quality and adherence to various statutory and other regulatory requirements. The Quality Review would involve inspection and assessment of the work of auditors while carrying out the audit function so that the Board is able to assess:

a) the quality of audit and reporting by the auditors; and

Question.4. Explain the basic principles of governing internal control.

Answer:This Auditing and Assurance Standard was the first standard on auditing issued by the Institute. As the name suggests, it seeks to lay down and briefly explain the basic principles which govern the auditor’s professional responsibilities and which should be complied with whenever an audit is carried out. These principles are, namely, integrity, objectivity and independence, confidentiality, skills and competence, work performed by others, documentation, planning, audit evidence, accounting system and internal control, and, finally, audit conclusions and reporting.

The fundamental principles of internal control apply to

Question.5. Discuss the specific problems of Electronic Data Processing (EDP) relating to internal control.

Answer:Specific Problems of Electronic Data Process relating to Internal Control

In an EDP system, the following problems arise in the implementation of internal control:

(a) Separation of duties: In a manual system, separate individuals are responsible for initiating transactions, recording transactions, and custody of assets. As a basic control, separation of duties prevents or detects errors and irregularities. In a computer system, however, the traditional notion of separation of duties does not always apply.

Question.6. Explain the factors for having the effective internal control system for a bank.

Answer:THE MAJOR ELEMENTS IN THE INTERNAL CONTROL STRUCTURE OF A BANK: Internal control structure of any organization depends upon the size, complexity and risk profile of its operation. Smaller banks may have less formal and structured internal control systems compared to relatively larger banks and may differ in their processes. However, the basic intent underlying any internal control process is that it should be efficient and effective, conducive to achievement of bank’s performance, information and compliance objectives.

Dear students get fully solved assignments

Send your semester & Specialization name to our mail id :

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or

Call us at : 08263069601

(Prefer mailing. Call in emergency )