How often Definition, role and responsibilities of internal audit is asked

Where it was asked

What costs marks here

The questions

1. May/Jun 2017, Q1.91.5 marks · multiple choice

   This is a multiple-choice question worth 18 marks in total. For each of the twelve subsections below, you must select the single alternative you regard as most correct, then write down the subsection number together with the letter preceding your chosen alternative (for example: 1.1 A, 1.2 B). Each subsection is worth one and a half (1½) marks and subsections must be answered in numerical order. When compared with the objectives of external auditors, the objectives of internal auditors focus more on:

2. May/Jun 2017, Q5.110 marks

   You have recently been appointed as the chief audit executive (CAE) of a newly formed internal audit division at Data Magic (Pty) Limited, a company specialising in software training that has grown substantially over the last five years. The managing director, who appointed you, believes that your appointment and the establishment of an internal audit department will assist her to better improve control in this fast growing company. After your first few weeks, the internal audit department is slowly shaping up, and you are planning to present a workshop for all the departments of the organisation to introduce the internal audit department and explain its workings. In your presentation you must discuss the following topics. As part of your workshop presentation for Data Magic (Pty) Limited, describe ten (10) advantages of having an internal audit function within the organisation.

3. May/Jun 2017, Q5.27 marks

   You have recently been appointed as the chief audit executive (CAE) of a newly formed internal audit division at Data Magic (Pty) Limited, a company specialising in software training that has grown substantially over the last five years. The managing director, who appointed you, believes that your appointment and the establishment of an internal audit department will assist her to better improve control in this fast growing company. After your first few weeks, the internal audit department is slowly shaping up, and you are planning to present a workshop for all the departments of the organisation to introduce the internal audit department and explain its workings. In your presentation you must discuss the following topics. Bearing in mind that an internal auditor also acts as an adviser within the organisation, give seven (7) examples of how the internal audit function at Data Magic (Pty) Limited can assist management.

4. May/Jun 2017, Q5.35 marks

   You have recently been appointed as the chief audit executive (CAE) of a newly formed internal audit division at Data Magic (Pty) Limited, a company specialising in software training that has grown substantially over the last five years. The managing director, who appointed you, believes that your appointment and the establishment of an internal audit department will assist her to better improve control in this fast growing company. After your first few weeks, the internal audit department is slowly shaping up, and you are planning to present a workshop for all the departments of the organisation to introduce the internal audit department and explain its workings. In your presentation you must discuss the following topics. Explain the aspects that should be included in the internal audit charter of Data Magic (Pty) Limited in order to grant the internal audit function the necessary authority.

5. May/Jun 2017, Q5.45 marks

   You have recently been appointed as the chief audit executive (CAE) of a newly formed internal audit division at Data Magic (Pty) Limited, a company specialising in software training that has grown substantially over the last five years. The managing director, who appointed you, believes that your appointment and the establishment of an internal audit department will assist her to better improve control in this fast growing company. After your first few weeks, the internal audit department is slowly shaping up, and you are planning to present a workshop for all the departments of the organisation to introduce the internal audit department and explain its workings. In your presentation you must discuss the following topics. List five (5) responsibilities of the internal audit activity at Data Magic (Pty) Limited, as set out in the internal audit charter.

6. May/Jun 2017, Q5.55 marks

   You have recently been appointed as the chief audit executive (CAE) of a newly formed internal audit division at Data Magic (Pty) Limited, a company specialising in software training that has grown substantially over the last five years. The managing director, who appointed you, believes that your appointment and the establishment of an internal audit department will assist her to better improve control in this fast growing company. After your first few weeks, the internal audit department is slowly shaping up, and you are planning to present a workshop for all the departments of the organisation to introduce the internal audit department and explain its workings. In your presentation you must discuss the following topics. List five (5) practices that would enhance a good working relationship between the audit committee and the internal audit activity at Data Magic (Pty) Limited.

7. May/Jun 2017, Q5.65 marks

   You have recently been appointed as the chief audit executive (CAE) of a newly formed internal audit division at Data Magic (Pty) Limited, a company specialising in software training that has grown substantially over the last five years. The managing director, who appointed you, believes that your appointment and the establishment of an internal audit department will assist her to better improve control in this fast growing company. After your first few weeks, the internal audit department is slowly shaping up, and you are planning to present a workshop for all the departments of the organisation to introduce the internal audit department and explain its workings. In your presentation you must discuss the following topics. Mention five (5) actions which can contribute to good co-operation and co-ordination between the internal auditors and the external auditors at Data Magic (Pty) Limited.

8. May/Jun 2016, Q1.11.5 marks · multiple choice

   This multiple-choice question requires you to select, for each numbered subsection, the single alternative you regard as most correct, and to write down the subsection number together with the letter of your chosen answer, answering the subsections in numerical order (for example 1.1 A, 1.2 B). Each of the fourteen subsections counts 1½ marks. Select the alternative that best completes the following statement of the Mission of Internal Audit: 'To enhance and ___(a)___ organizational value by providing risk-based and objective assurance, ___(b)___, and insight.'

9. May/Jun 2016, Q1.41.5 marks · multiple choice

   This multiple-choice question requires you to select, for each numbered subsection, the single alternative you regard as most correct, and to write down the subsection number together with the letter of your chosen answer, answering the subsections in numerical order (for example 1.1 A, 1.2 B). Each of the fourteen subsections counts 1½ marks. Choose the alternative that correctly completes the sentence: 'The main purpose of an internal audit is to...' The options are: reviewing the means of safeguarding assets and, where appropriate, verifying the existence of such assets; reviewing the reliability and integrity of financial and operating information; appraising the effectiveness and efficiency of operations; or assisting management of the organisation in the effective discharge of their responsibilities.

10. May/Jun 2016, Q1.141.5 marks · multiple choice

    This multiple-choice question requires you to select, for each numbered subsection, the single alternative you regard as most correct, and to write down the subsection number together with the letter of your chosen answer, answering the subsections in numerical order (for example 1.1 A, 1.2 B). Each of the fourteen subsections counts 1½ marks. The scope of an internal audit engagement encompasses a systematic, disciplined approach to evaluate and improve the adequacy and effectiveness of certain processes. Identify which one of the following processes is the EXCEPTION, i.e. is NOT included in this scope: risk management, control, regulation, or governance.

11. Oct/Nov 2013, Q1.31.5 marks · multiple choice

    For each part of this multiple-choice question, choose only the one alternative you consider most correct. Write down the sub-question number followed by the letter of the alternative you selected, and answer the parts in numerical order, for example 1.1 A, 1.2 B. Each part counts 1½ marks. (Questions adapted from Vallabhaneni: CIA Exam Review.) Which one of the following statements best describes the purpose of internal auditing?

12. Oct/Nov 2013, Q1.51.5 marks · multiple choice

    For each part of this multiple-choice question, choose only the one alternative you consider most correct. Write down the sub-question number followed by the letter of the alternative you selected, and answer the parts in numerical order, for example 1.1 A, 1.2 B. Each part counts 1½ marks. (Questions adapted from Vallabhaneni: CIA Exam Review.) Which one of the following statements best describes management's objective?

13. Oct/Nov 2013, Q2.14 marks

    You are the chief audit executive (CAE) of Inferno Limited, a company listed on the Johannesburg Stock Exchange (JSE). Having interacted with senior management recently, you realised that they were not well informed about the roles and responsibilities of internal audit. You therefore compiled a presentation and delivered it to senior management at the next management meeting. During the meeting, several managers asked you to clarify certain issues, which you must address below. As CAE of Inferno Limited, describe the objective of the internal audit activity.

14. Oct/Nov 2013, Q2.29 marks

    You are the chief audit executive (CAE) of Inferno Limited, a company listed on the Johannesburg Stock Exchange (JSE). Having interacted with senior management recently, you realised that they were not well informed about the roles and responsibilities of internal audit. You therefore compiled a presentation and delivered it to senior management at the next management meeting. During the meeting, several managers asked you to clarify certain issues, which you must address below. The International Professional Practices Framework (IPPF) is made up of six (6) elements. Name each of these six elements and, for each one, state whether it is mandatory or strongly recommended. (One mark is awarded for correctly naming each element, and half a mark for correctly classifying it as mandatory or strongly recommended.)

15. Oct/Nov 2013, Q2.36 marks

    You are the chief audit executive (CAE) of Inferno Limited, a company listed on the Johannesburg Stock Exchange (JSE). Having interacted with senior management recently, you realised that they were not well informed about the roles and responsibilities of internal audit. You therefore compiled a presentation and delivered it to senior management at the next management meeting. During the meeting, several managers asked you to clarify certain issues, which you must address below. With reference to the IPPF, explain what is meant by independence, which consists of organisational independence and individual objectivity. Define the term 'organisational independence' and define the term 'individual objectivity'.

16. Oct/Nov 2013, Q2.44 marks

    You are the chief audit executive (CAE) of Inferno Limited, a company listed on the Johannesburg Stock Exchange (JSE). Having interacted with senior management recently, you realised that they were not well informed about the roles and responsibilities of internal audit. You therefore compiled a presentation and delivered it to senior management at the next management meeting. During the meeting, several managers asked you to clarify certain issues, which you must address below. The Chief Executive Officer (CEO) of Inferno Limited asks why Internal Audit cannot report both administratively and functionally to him directly. With reference to the IPPF, list two (2) advantages and two (2) disadvantages explaining why this reporting line is not recommended.

17. Oct/Nov 2013, Q2.55 marks

    You are the chief audit executive (CAE) of Inferno Limited, a company listed on the Johannesburg Stock Exchange (JSE). Having interacted with senior management recently, you realised that they were not well informed about the roles and responsibilities of internal audit. You therefore compiled a presentation and delivered it to senior management at the next management meeting. During the meeting, several managers asked you to clarify certain issues, which you must address below. One of the senior managers at Inferno Limited asks what happens if a fraud has been detected and management wants internal audit to assist with the investigation. With reference to the IPPF, describe the internal auditor's responsibilities in investigating fraud.

18. Oct/Nov 2013, Q2.62 marks

    You are the chief audit executive (CAE) of Inferno Limited, a company listed on the Johannesburg Stock Exchange (JSE). Having interacted with senior management recently, you realised that they were not well informed about the roles and responsibilities of internal audit. You therefore compiled a presentation and delivered it to senior management at the next management meeting. During the meeting, several managers asked you to clarify certain issues, which you must address below. At Inferno Limited, identify who is responsible for coordinating the work of the internal auditor and the external auditor.

19. May/Jun 2013, Q1.21.5 marks · multiple choice

    Candidates must answer this multiple-choice question by choosing only one alternative that they consider most correct for each subsection, writing down the subsection number together with the letter of the alternative chosen, and answering the subsections in numerical order (for example, 1.1 A, 1.2 B). Each subsection counts 1½ marks. Select the alternative that correctly completes this statement: the position of the chief audit executive is correctly defined as the...

20. May/Jun 2013, Q1.51.5 marks · multiple choice

    Candidates must answer this multiple-choice question by choosing only one alternative that they consider most correct for each subsection, writing down the subsection number together with the letter of the alternative chosen, and answering the subsections in numerical order (for example, 1.1 A, 1.2 B). Each subsection counts 1½ marks. Indicate which of the following alternatives is NOT one of the four functions of management: reviewing, organising, directing, or planning.

21. May/Jun 2013, Q3.16 marks

    You have just been appointed as the chief audit executive (CAE) of a newly established internal audit division at Data Magic (Pty) Limited, a company that specialises in software training and has expanded considerably over the past five years. The managing director who appointed you believes that creating this internal audit department, together with your appointment, will help her strengthen control within this rapidly growing business. A few weeks into the job, the internal audit department is gradually taking shape, and you are preparing to run a workshop for every department in the organisation to introduce the internal audit function and explain how it operates. Your presentation must cover the topics below. As part of your workshop presentation, describe six (6) benefits that come from having an internal audit function within Data Magic (Pty) Limited's organisation.

22. May/Jun 2013, Q3.27 marks

    You have just been appointed as the chief audit executive (CAE) of a newly established internal audit division at Data Magic (Pty) Limited, a company that specialises in software training and has expanded considerably over the past five years. The managing director who appointed you believes that creating this internal audit department, together with your appointment, will help her strengthen control within this rapidly growing business. A few weeks into the job, the internal audit department is gradually taking shape, and you are preparing to run a workshop for every department in the organisation to introduce the internal audit function and explain how it operates. Your presentation must cover the topics below. Given that an internal auditor also acts as an adviser within the organisation, provide seven (7) examples illustrating how the internal audit function can assist management at Data Magic (Pty) Limited.

23. May/Jun 2013, Q3.35 marks

    You have just been appointed as the chief audit executive (CAE) of a newly established internal audit division at Data Magic (Pty) Limited, a company that specialises in software training and has expanded considerably over the past five years. The managing director who appointed you believes that creating this internal audit department, together with your appointment, will help her strengthen control within this rapidly growing business. A few weeks into the job, the internal audit department is gradually taking shape, and you are preparing to run a workshop for every department in the organisation to introduce the internal audit function and explain how it operates. Your presentation must cover the topics below. Explain the aspects that need to be incorporated into the internal audit charter in order to grant the internal audit function the necessary authority.

24. May/Jun 2013, Q3.47 marks

    You have just been appointed as the chief audit executive (CAE) of a newly established internal audit division at Data Magic (Pty) Limited, a company that specialises in software training and has expanded considerably over the past five years. The managing director who appointed you believes that creating this internal audit department, together with your appointment, will help her strengthen control within this rapidly growing business. A few weeks into the job, the internal audit department is gradually taking shape, and you are preparing to run a workshop for every department in the organisation to introduce the internal audit function and explain how it operates. Your presentation must cover the topics below. List seven (7) responsibilities of the internal audit activity as set out in the internal audit charter.

25. May/Jun 2013, Q3.57 marks

    You have just been appointed as the chief audit executive (CAE) of a newly established internal audit division at Data Magic (Pty) Limited, a company that specialises in software training and has expanded considerably over the past five years. The managing director who appointed you believes that creating this internal audit department, together with your appointment, will help her strengthen control within this rapidly growing business. A few weeks into the job, the internal audit department is gradually taking shape, and you are preparing to run a workshop for every department in the organisation to introduce the internal audit function and explain how it operates. Your presentation must cover the topics below. List seven (7) practices that would help to foster a good working relationship between the audit committee and the internal audit activity.

26. May/Jun 2013, Q3.69 marks

    You have just been appointed as the chief audit executive (CAE) of a newly established internal audit division at Data Magic (Pty) Limited, a company that specialises in software training and has expanded considerably over the past five years. The managing director who appointed you believes that creating this internal audit department, together with your appointment, will help her strengthen control within this rapidly growing business. A few weeks into the job, the internal audit department is gradually taking shape, and you are preparing to run a workshop for every department in the organisation to introduce the internal audit function and explain how it operates. Your presentation must cover the topics below. Mention nine (9) actions that can contribute towards good co-operation and co-ordination between the internal auditors and the external auditors.

27. Oct/Nov 2012, Q1.31.5 marks · multiple choice

    For this question on internal auditing, choose the one alternative you consider most correct for each of the ten subsections listed below. Write down the subsection number together with the letter of your chosen alternative (for example 1.1 A, 1.2 B), answering the subsections in numerical order. Each subsection counts 1½ marks. (Questions adapted from Vallabhaneni: CIA Exam Review) Compared with the objectives of external auditors, the objectives of internal auditors focus more on which of the following?

28. Oct/Nov 2012, Q1.91.5 marks · multiple choice

    For this question on internal auditing, choose the one alternative you consider most correct for each of the ten subsections listed below. Write down the subsection number together with the letter of your chosen alternative (for example 1.1 A, 1.2 B), answering the subsections in numerical order. Each subsection counts 1½ marks. (Questions adapted from Vallabhaneni: CIA Exam Review) Identify the element of authority attributed to the internal audit activity that should be included in its charter.

29. May/Jun 2012, Q1.31.5 marks · multiple choice

    This question consists of twelve multiple-choice items, each worth 1½ marks. For each item you must choose the single most correct alternative, then in your answer book write the sub-question number followed by the letter of your chosen option (for example 1.1 A, 1.2 C), answering the items in numerical order. Follow-up activity must be carried out to confirm that corrective action has actually taken place. In which document should the internal audit function's responsibility for performing such required follow-up activities be defined?

30. May/Jun 2012, Q2.16 marks

    You are a trainee internal auditor employed by the Department of Education (DoE) in Pretoria, and you are also currently registered as a BCom Internal Auditing student with Unisa. This question is divided into three parts: Part A (25 marks), Part B (15 marks) and Part C (20 marks), each set in a different scenario relating to your role as trainee internal auditor. Part A scenario: the Minister of Basic Education has launched an awareness programme to introduce Grade 10 learners to different professions so that they know what options are open to them after finishing secondary school. Every division of the DoE was asked to present its field of work, and the internal audit department chose you to give a presentation introducing internal auditing to a local secondary school. As part of preparing this presentation, describe the objective, the boundaries and the methodology of the internal audit activity as these are set out in the definition of internal auditing.

31. May/Jun 2012, Q2.24 marks

    You are a trainee internal auditor employed by the Department of Education (DoE) in Pretoria, and you are also currently registered as a BCom Internal Auditing student with Unisa. This question is divided into three parts: Part A (25 marks), Part B (15 marks) and Part C (20 marks), each set in a different scenario relating to your role as trainee internal auditor. Continuing with the presentation you, as trainee internal auditor at the DoE, are preparing for Grade 10 learners on internal auditing, indicate what an effective internal audit activity should contribute to both the company (or organisation) and to its board.

32. May/Jun 2012, Q2.36 marks

    You are a trainee internal auditor employed by the Department of Education (DoE) in Pretoria, and you are also currently registered as a BCom Internal Auditing student with Unisa. This question is divided into three parts: Part A (25 marks), Part B (15 marks) and Part C (20 marks), each set in a different scenario relating to your role as trainee internal auditor. As part of the same presentation on internal auditing to the Grade 10 learners, list ten personal characteristics that an internal auditor should possess in order to carry out his or her tasks efficiently and professionally.

33. May/Jun 2012, Q2.49 marks

    You are a trainee internal auditor employed by the Department of Education (DoE) in Pretoria, and you are also currently registered as a BCom Internal Auditing student with Unisa. This question is divided into three parts: Part A (25 marks), Part B (15 marks) and Part C (20 marks), each set in a different scenario relating to your role as trainee internal auditor. Still as part of your presentation on internal auditing, describe the nature of the work that the internal audit activity is required to perform in order to improve the risk management and governance processes of an organisation, or of the DoE specifically, making reference to the (IIA) Standards.

34. May/Jun 2012, Q2.510 marks

    You are a trainee internal auditor employed by the Department of Education (DoE) in Pretoria, and you are also currently registered as a BCom Internal Auditing student with Unisa. This question is divided into three parts: Part A (25 marks), Part B (15 marks) and Part C (20 marks), each set in a different scenario relating to your role as trainee internal auditor. Part B scenario: you have been assigned to an internal audit of the payroll function at the DoE. The DoE pays weekly wages to maintenance, cleaning and gardening staff, while all other personnel are paid monthly by electronic fund transfer (EFT). Two colleagues have also been assigned to this payroll audit: (I) Ms Z, the internal audit senior on the assignment, is married to the payroll manager, Mr X, but has kept her maiden surname because she does not want anyone to know she is married to Mr X; and (II) Ms Knowledge, the internal auditor on the assignment, previously worked in the payroll department and was appointed as an internal auditor only the previous month because of a staff shortage in the internal audit department. Considering each of these two scenarios in light of the Institute of Internal Auditors' (IIA's) code of ethics, indicate for each whether or not it contravenes the code of ethics, and if it does, state the principle(s) involved, the relevant rules of conduct, and give reasons for your answer. Present your answer using a table with columns for Question number, Yes/No, Principle, Rules of conduct and Reason, where for scenario (I) the mark allocation is half a mark for Yes/No, 1 mark for Principle, 2 marks for Rules of conduct and 2 marks for Reason, and for scenario (II) it is half a mark for Yes/No, 2 marks for Principle, 3 marks for Rules of conduct and 2 marks for Reason.

35. May/Jun 2012, Q2.65 marks

    You are a trainee internal auditor employed by the Department of Education (DoE) in Pretoria, and you are also currently registered as a BCom Internal Auditing student with Unisa. This question is divided into three parts: Part A (25 marks), Part B (15 marks) and Part C (20 marks), each set in a different scenario relating to your role as trainee internal auditor. Still in relation to your work as an internal auditor on the DoE payroll audit, describe the liability which an internal auditor can incur towards his or her employer.

36. May/Jun 2012, Q2.78 marks

    You are a trainee internal auditor employed by the Department of Education (DoE) in Pretoria, and you are also currently registered as a BCom Internal Auditing student with Unisa. This question is divided into three parts: Part A (25 marks), Part B (15 marks) and Part C (20 marks), each set in a different scenario relating to your role as trainee internal auditor. Part C scenario: you have been assigned to conduct a review of wage payments, and the following internal controls have been identified: (I) all overtime worked is authorised by the section head; (II) the payroll administrator checks the payroll for arithmetic accuracy; (III) the payroll manager matches the wages cheque amount to the total net wages for the same period; and (IV) employees are required to sign for their wages. For this review, list, in the correct sequence, the four main phases or steps of the internal audit process, and briefly describe each phase or step.

37. May/Jun 2012, Q2.86 marks

    You are a trainee internal auditor employed by the Department of Education (DoE) in Pretoria, and you are also currently registered as a BCom Internal Auditing student with Unisa. This question is divided into three parts: Part A (25 marks), Part B (15 marks) and Part C (20 marks), each set in a different scenario relating to your role as trainee internal auditor. Referring to the same wage payment review, where the identified controls are (I) all overtime worked is authorised by the section head, (II) the payroll administrator checks the payroll for arithmetic accuracy, (III) the payroll manager matches the wages cheque amount to the total net wages for the same period, and (IV) employees are required to sign for their wages, give one example, for each of these four controls, of what could go wrong if that particular control were absent.

38. May/Jun 2012, Q2.96 marks

    You are a trainee internal auditor employed by the Department of Education (DoE) in Pretoria, and you are also currently registered as a BCom Internal Auditing student with Unisa. This question is divided into three parts: Part A (25 marks), Part B (15 marks) and Part C (20 marks), each set in a different scenario relating to your role as trainee internal auditor. Again referring to the wage payment review with the same four controls listed - (I) authorisation of overtime by the section head, (II) the payroll administrator's check of the payroll for arithmetic accuracy, (III) the payroll manager matching the wages cheque amount to total net wages for the period, and (IV) employees signing for their wages - give one basic audit procedure you could use to test the reliability of each of these four controls.