Aud 241 Class 25 Feb 2025

You are the Head of the Internal Audit Department and your team is in the process of finalising the internal audit engagement on the invoicing process in the organisation and preparing the report with findings. The findings have not yet been finalised and are still being discussed. You have been invited to spend the weekend in the Head of Procurement Department’s country house end enjoy a weekend filled with social activities and entertainment. The best course of action is that you:

• Accept the invitation, there is nothing wrong with some social activities over the weekend

• Accept the invitation, but decline to discuss any work related issues

• Do not accept the invitation at this time.

After years of trying, you finally got another internal audit job in your dream company. Before you leave your current employer, you:

• Copy all working papers, methodologies, and reports because you may use some of them again in your new job

• Copy only materials you have developed yourself while working overtime

• Pack and take away only personnel belongings and files.

You are a junior member of the internal audit team and are performing an internal audit for the first time. You notice some unusual transactions which you believe are connected with money laundering. The appropriate action is:

• Report the client to the authorities immediately

• Decline to perform the internal audit further and disassociate yourself with the engagement

• Report the findings to your supervisor and the Head of Internal Audit and ask them to review your work and advise on appropriate further action.

You and your colleague are both members of the internal audit team of a large municipality. While travelling home together on the bus you actively discuss your work, mentioning details, names, findings related to procurement and contracting. There are other people travelling on the bus who may overhear your conversation:

• There is nothing wrong with this as the other bus passengers are not proficient in the technical issues being discussed

• The other bus passengers are entitled to hear because all information on the use of taxpayers’ money is public

• This is a breach of the GIAS as internal auditors are required to keep information confidential unless disclosure is require by law

• This is partially wrong: the internal auditors should keep information confidential, but the other people on the bus are also to blame as they should not listen to other people’s conversations

The appropriate response if offered small value contributions in kind from auditees, such as gifts and lunches, is:

• Small gifts are acceptable if given to all members of the internal audit department at the same time

• Business lunches are considered acceptable

• Nothing may be accepted as auditors must maintain objectivity (in appearance and in action)

You have completed your B.Com Financial Accounting Degree and are currently registered with the IIA’s professional training program and are completing the third year of the program. You are preparing for the CIA exams. A friend of yours (who is also planning to write the CIA exams), has a contact in the USA who can give you access to the CIA part 1 paper that is to be written.

While busy writing the Part 2 of the CIA exam online (being offered online due to Covid), one of your friends message you the answer for one of the questions. You did not contact him to request help, but he sent you the message anyway. You were struggling with the answer to that particular question. What do you do?

Mr Ricardo is working as an internal auditor at Nala Ltd. During the performance of an internal audit of the sales division of Nala, he detected fraud committed by the sales clerk. The sales clerk offered to pay a substantial amount into Mr Ricardo’s bank account in return for not disclosing the fraud.

•Discuss ito of Domain II of the GIAS

Ricardo January is an internal auditor working as the head of internal audit at Siesa (Pty)Ltd a waste water management facility. During the performance of an internal audit, he detected that Siesa released polluted water into the Vaal River which exceeded the permitted levels by 50 times.

Discuss in terms of Domain II of the GIAS, what should Ricardo do?