Financial Systems and Auditing

Financial Systems and Auditing

Task 1

a ) The external auditors should obtain an understanding of the internal audit so that they can know what system of control they use and thus be able to conduct their own audit reasonably . Without understanding this they would not know how they can access the internal audit systems and recognize failures or errors

b ) The internal and external audit use ethical codes and international standards to access the risk and control systems of business . The internal audit is part of the business while the other

is contracted While an internal audit is involved with all aspects of the organization the external one focuses on the financial statements

c ) The four important criteria in understanding and assessing the internal audit function according to Kaplan and Norton are Stakeholders customer , innovation learning and growth and internal processes . This involves fulfilling responsibility to stake holders , attaining the vision of serving the customer , excelling at business processes and whether there is learning and innovation being employed in the functions

Task 2

a ) Existence means that the policies do exist and are valid .Rights would refer to the scope of the coverage

Accuracy and detail tie in would refer to whether the details of the policies are correct

Classification refers to how the policies have been placed if they are in the correct class

Cut off refers to limits on the policies

Presentation and disclosure refers to

Procedures to be included in the audit are whether amounts are paid...