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1. Dear students get fully solved assignments
Send your semester & Specialization name to our mail id
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or
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ASSIGNMENT
DRIVE FALL 2018
PROGRAM MBA
SEMESTER 3
SUBJECT CODE & NAME FIN 304 - Internal Audit and Control
BK ID B1733
CREDITS 2, 4
MARKS 30
Note – The Assignment is divided into 2 sets. You have to answer all questions in both sets.
Average score of both assignments scored by you will be considered as your IA score. Kindly note
that answers for 10 marks questions should be approximately of 400 words.
SET I
Question.1. What do you mean by Financial Audit? What are the
advantages of Financial Audit?
Answer:A financial auditinvolvesthe verificationof the financial statements of a company (or other
institution or business entity) by an auditor. The aim of the audit is to verify that the financial
statements have been made properly and meet the criteria set out in the Accounting Act. By law,
auditsare requiredtobe performedbyvarioustypesof financial and public institutions (e.g. banks,
pensionfunds,insurance companies,joint-stock companies) and companies that meet at least two
of the following conditions:
Question.2.What are the differences between internal audit and
external audit list out its similarities and dissimilarities?
Answer:Internal audit and external audit are both the watchdog of entity and shareholders;
however,there are some keydifferentbetween internal and external audit for some perspectives.
For example,purpose,employment, legal requirement, reporting and so on. The following are the
key different and similarity of internal audit and external audit:
The Different of External and Internal Audit

2. Purpose of Audit: However, internal auditor is not
Question.3. What are the factors that are to be considered in
Internal Audit Planning?
Answer:The auditorshouldconsiderthe auditapproachhe wishes to adopt, including the extent to
which he may rely on internal controls and any aspects of the audits, which need particular
attention. Matters to consider by the auditor in developing overall audit plan include;
 Understanding the accounting and internal control systems
 the auditor should seek to understand the
SET II
Question.1. What are the basic principles that are governing
internal Control?
Answer:The Code of Ethical Conduct of the internal auditor was approved by Order no. 252/2004.
Basedon thisact, the generally accepted basic principles for the good organization and exercise of
the internal auditor profession are focused on the five major objective elements:
 Integrity;
 Independence and objectivity;
 Confidentiality;
 Competence in exercising the profession;
 Political neutrality.
Question.2. What is Audit Risk? What are the various important
elements that an insurance company should ensure for effective
internal control system?
Answer:Some of us were taught that internal control for smaller entities was an oxymoron. My
supervisorsmade itclearthat,because segregationof incompatible duties was not usually possible
for smaller entities, internal control was non-existent. In 2006, COSO changed the rules by
publishingInternal Control over Financial Reporting — Guidance for Smaller Public Companies and
recognizing there are different rules for larger and smaller entities.

3. Question.3. What are problems encountered in an electronic data
Processing environment?
Answer:Audit clients who have not computerized their accounting systems to some extent are all
but non-existentintoday'smarketplace.Probablyasdifficulttolocate would be an auditor who had
not questioned whether he or she had properly considered the impact of a computerized
environment on audit strategy. One relevant question in a computerized environment that every
auditor should ask is, "Does my audit approach result in inadvertent reliance on computer-based
controls without having properly tested these controls?"
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Send your semester & Specialization name to our mail id
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