Integrated Audits Interview Preparation Guide
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Integrated Audits Frequently Asked Questions in various Integrated Audits Interviews asked by the interviewer. So learn Integrated Audits with the help of this Integrated Audits Interview questions and answers guide and feel free to comment as your suggestions, questions and answers on any Integrated Audits Interview Question or answer by the comment feature available on the page.

36 Integrated Audits Questions and Answers:

1 :: What is an integrated audit?

The modern integrated audit approach combines elements of several traditional audit areas including financial, operational, and information technology.
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2 :: What is that new approach for integrated audits?

The modern approach permits one audit of an auditable entity with one comprehensive report.One additional benefit is that this approach assists in staff development and retention. This publication address the four basics phases of a modern integrated audit approach:

Planning
Evaluation
Testing
Reporting

This enclosed work program addressing each of these phases in standard workpaper format using MS Word to facilitation modification to each Audit Department?s standards and to complete each audit efficiently.
The work program contains over 50 steps required to complete an audit using this approach.
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3 :: Explain how does the internal audit differ from an external audit?

Internal audit nothing but the checking the product that you produced.
External audit is checking your product by your customer.
Here it means you may not find mistakes in your processes but a third man who comes and check the system he may see some deviations in the system and give suggestions for the improvements of the system.
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4 :: Explain how we can evaluate the internal control audit?

Compliance procedures are tests designed to obtain reasonable assurance that these internal controls on which audit reliance is to be placed are in effect. The auditor can test the functioning of the controls and not the transactions. He can check the exceptions and departure from suggested internal control. When there is strict supervisory control the staff can not digress from prescribed control procedures. Compliance procedures can be applied with the help of audit sampling.

The samples can be selected from various categories of transaction in order to test the control aspect. He can examine evidence through inspection of signature. He can apply re performance and observation techniques. He can check custodial control over assets. He can examine the segregation of duties. He can go through supervisory controls. The auditor can test all the items included in the sample. The compliance procedures can ensure the auditor that internal control exists. The control is operating effectively. The control has so operated throughout the period of intended reliance.
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5 :: Explain the Essential Of Internal Audit?

Planning is an essential feature of internal audit. The auditor can plan to check the accounting system. The plan may relate to accounting functions like purchase, sales, income, expenses and shares. The planning includes degrees of risk and extent of audit. It also states the nature of audit work. Controlling is an essential feature of internal audit. Auditor can examine the operations of accounting system. He can control audit work through audit program. The whole audit work is distributed among audit staff.

Recording is an essential feature of internal audit. The audit can record the facts and figures in order to express his views in the business activities. The audit note book and audit working papers are used to record the information. Independence is essential element of internal audit. The work of internal audit is done by an employee of the company. He must not be influenced by management. He must be free in developing audit program, audit investigation and audit reporting.
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6 :: Explain different advantages and disadvantages of internal audit?

Advantages of Internal Audit are following:
It is in-expensive.
No charted accounted is required to audit internally.
Errors will be removed before preparing financial statements.
There will not be any type of embarrassment in the society because errors have been removed.
Accounting staff will remain in pressure so record will remain update every time in the organization.
Disadvantages are following:
Internal audit is not acceptable by the shareholder.
There can be errors in internal audit because he is not an auditor.
And there are some more.
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7 :: Explain what does an Internal Audit Charter contain?

This charter describes the mission, independence and objectivity, scope and responsibilities, authority, accountability and standards of the Internal Audit function.
A charter is basically a delegation or grant of authority from a person or organization of authority to another person or organization. The purpose of an internal audit charter is to compel the departments that need to be audited to provide the information required by the auditor. Without this charter or similar authority most managers wouldn't see any benefit to being audited and would likely refuse to provide anything the auditor needed.
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8 :: What is an internal quality audit? What happens during this audit?

If your organization is CMM level 5, It has some set of
process, which needs to be followed.
Now, audit happens internally to check if all the processes
are followed as per the rules set/ templates, proper
frequency. During the audit, auditor asks questions to
verify the same. If some set of processes are not followed,
auditor gives NC (Non Compliance) for that, which should be
rectified within 2 weeks time.
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9 :: Explain An Internal Audit And What Is The Role Of Internal Audit?

The internal audit is a continuous review of operations and records undertakes within the business and is normally done by specially assigned staff. It should operate independently of all the internal check and in no case should divest any one of the responsibilities placed upon him. Internal auditing is an independent appraisal activity within an organization for the review of operations as a service to management. It is managerial control which functions by measuring and evaluating the effectiveness of other controls.

To achieve its objectives the auditor has to review the following areas:

► Reliability and integrity of the information.
► Compliance with the policies, plans, procedures, laws and regulations.
► Safeguarding of assets.
► Economical and efficient use of resources.
► Accomplishment of established objectives and goals for operations or programs.
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10 :: What are different functions Of internal audit?

The function of internal audit is concerned with analysis of internal check. The internal audit can look into the duties of each employee. All employees are provided jobs on the basis of their abilities. The auditor can test the effectiveness of internal check. The function of internal audit is examining the application of legal requirements.

The accounts are prepared under certain legal frame work. Verification of accuracy is a function of internal audit. The accuracy of accounting books and records can be verified with the help auditing techniques. The audit techniques include inspection, observation, inquiry, confirmation, computation and review. An auditor can check the accuracy through these techniques.

Confirmation of liability is a function of internal auditor can determine the work done by every person. The carelessness or negligence on the part of worker is noted. The concerned person is given a chance to explain his position. If the reason is not justified, the liability is confirmed. The function of internal audit is to examine the assets protection. The proper record is to be maintained. The possession must be in the hands of senior officer. The assets are used for business only. There are proper purchase and disposal of these assets. The internal auditor can check that assets are protected.
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