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Auditing Question Paper

Auditing

Course:Bachelor Of Science In Entrepreneurship

Institution: Moi University question papers

Exam Year:2010

AUDITING
DATE: APRIL 2010 TIME: 2 HOURS
INSTRUCTIONS: Answer Question ONE and Any other TWO Questions
QUESTION ONE
Internal auditing is an independent, objective assurance and consulting activity designed
to add value and improve an organization’s operations. It helps an organization accomplish its
objectives by bringing a systematic, disciplined approach to evacuate and improve the effectiveness of
risk management, control and governance processes.
a) In view of this definition of internal auditing, explain the meaning of the following terms.
(16 Marks)
1) Independence. 5) Value adding.
2) Objectivity. 6) Risk management.
3) Assurance services. 7) Control processes.
4) Consulting services. 8) Governance.
b) What is an internal audit charter? Outline the major information contained in the charter.
(5 Marks)
c) Detail the three classes of professional practice frame work (P.P.F) Standards giving example
in each case (9 Marks).
2
QUESTION TWO
The main aim of controls is to provide reasonable assurance that the organization will achieve its
established objectives.
a) P.A 2100-1 classifies controls into three categories. Describe the three categories giving examples
in each case (6 Marks)
b) State five qualities of an effective control.
c) Outline the three forms of control self assessment (CSA).
QUESTION THREE
One of the government parastatals is suspected with fraud. You have been asked to join a team
that is carrying out fraud investigation.
a) Define forensic auditing and vividly explain the role of internal auding in fraud investigation.
(10 Marks).
b) State any five factors that can contribute to or pursuit fraud in an organization (5 Marks).
c) What are some of the fraud danger signals? (5 Marks).
QUESTION FOUR
Standard 2030 requires the chief audit executive to ensure that internal audit resources are appropriate,
sufficient and effectively deployed to achieve the approved plan. Assuming you are the chief audit
executive in your organization, detail a human resource program for:
a) Recruiting and selecting.
b) Training and developing.
c) Appraising, evaluating and counseling. (20 Marks).

Auditing Question Paper

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