This document provides information about an assignment for an MBA course on Internal Audit and Control. It includes 6 questions related to distinguishing between types of audits, similarities and differences between internal and external audits, quality control policies for audit firms, principles of internal control, problems with electronic data processing related to internal control, and factors for an effective internal control system in a bank. Students are to answer the questions in approximately 400 words each for a total of 60 marks. The assignment can be purchased by emailing or calling the provided contact information for Rs. 125 per question.

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Master of Business Administration - MBA Semester 3
MF0013-Internal Audit & Control
(Book ID: 1733)
Assignment (60 Marks)
Note: Answers for 10 marks questions should be approximately of 400 words. Each question is
followed by evaluation scheme. Each Question carries 10 marks 6 X 10=60.
Q1. Distinguish between Government audit and Specific audit. Explain types of Government and
Specific Audit?
Distinguish between Government audit and Specific audit. - 5
Explain types of Government and Specific Audit? - 5
Answer. Distinguish between Government audit and Specific audit:
Government audit is yet another variety of general audit. Government audit is a particular variety
of external audit done by the CAG, concerned exclusively with government activity.
A specific audit is one which is limited in its scope in terms of coverage of areas, events or period.
Generally, the objectives of specific audit are established before the audit starts. The objectives
are specific, like detection of a suspected fraud, ascertainment of profits for declaration of interim
Q2. Write the similarity and dissimilarity of Internal and External Audit? Explain the
Cooperation between external and internal auditor.
Similarity and Dissimilarity of Internal and External Audit - 5
Co-operation between external and internal Auditor - 5
Answer. Similarity
1. Evaluation of the internal control systems of the entity.
2. Correctness of accounting documentation, bookkeeping and financial reporting.
3. Verification of assets.

2. Q3. The audit firm follows certain policies and procedures. Explain the quality control policies
adopted by an audit firm.
Explanation of all the 12 points under audit firm - 10
Answer. 12 Points:
1. The audit firm should ensure that all audits comply with auditing standards, and accordingly the
firm has to design and implement quality control policies and procedures.
2. The quality control policies to be adopted by an audit firm will usually include the following:
(a) Professional requirements: The firm’s personnel have to follow the principles of independence,
objectivity, confidentiality, integrity and professional behaviour.
Q4. Explain the basic principles of governing internal control.
Answer. Principles of governing internal control:-
1. Objectives and Purpose of Internal Control
Internal control comprises preventive actions as well as daily and subsequent controls needed to
ensure the achievement of business objectives. Internal control plays an active role in company
management, administration and daily operations.
Objectives of internal control are:
• Effectiveness and efficiency of operations
• Reliability of financial and operational reporting
• Compliance with laws, agreements and policies
• safeguarding assets and information
Q5. Discuss the specific problems of Electronic Data Processing (EDP) relating to internal control.
Answer. 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 of detects
errors and irregularities. In a computer system, however, the traditional notion of separation of
duties does not always apply. For example, as program may reconcile a vendor invoice against a
receiving document and print a cheque for the amount owed to a creditor. Thus, this program is
performing functions that in a manual systems would be considered incompatible.

3. Q6. Explain the factors for having the effective internal control system for a bank.
Answer. An effective internal control system requires that the material risks that could adversely
affect the achievement of the bank’s goals are being recognized and continually assessed. This
assessment should cover all risks facing the bank and the consolidated banking organization (that
is, credit risk, country and transfer risk, market risk, interest rate risk, liquidity risk, operational
risk, legal risk and reputational risk). Internal controls may need to be revised to appropriately
address any new or previously uncontrolled risks.
Summer-2016
Get solved assignments at nominal price of Rs.125 each.
Mail us at: subjects4u@gmail.com or contact at
09882243490