Internal Audit Process and Responsibilities

The video provides a comprehensive guide on internal audits, explaining their purpose, process, and significance. It covers the steps involved in conducting an internal audit, from planning to reporting, and emphasizes the role of internal audits in ensuring organizational compliance and efficiency.

What is the primary role of internal auditing within an organization?

• To manage daily operations

• To provide independent assurance and add value

• To handle customer complaints

• To oversee employee performance reviews

Who does the internal audit team report to within an organization?

• The Finance Department

• The Marketing Department

• The Board of Directors

• The Human Resources Department

What is the purpose of the announcement letter in the internal audit process?

• To announce new company policies

• To provide feedback on past audits

• To inform the auditee about the audit scope and schedule

• To introduce new team members

During the pre-audit meeting, what is the auditor's main objective?

• To finalize the audit report

• To train the auditee on new software

• To understand the process and identify potential risks

• To negotiate audit fees

Why is it important to request documents via email rather than on a pen drive?

• Pen drives are more expensive

• Emails provide a record for accountability

• Emails are faster to send

• Pen drives can be easily lost

What is the purpose of the risk control matrix (RCM) in the audit process?

• To schedule audit meetings

• To list all employees in the audit team

• To summarize past audit findings

• To outline potential risks and controls

What is the significance of sampling during the fieldwork phase?

• To reduce the number of auditors needed

• To ensure all documents are reviewed

• To make the audit process more efficient

• To focus on the most critical areas

What should an auditor do if they discover a critical issue during the audit?

• Ignore it and continue the audit

• Notify the auditee immediately

• Discuss it only with the audit manager

• Wait until the final report to mention it

What is the purpose of the draft audit report?

• To gather feedback from the auditee

• To announce the next audit

• To finalize the audit findings

• To train new auditors

What is the final step in the internal audit process?

• Scheduling the next audit

• Releasing the final audit report

• Training the auditee on new procedures

• Conducting a follow-up audit