1. Audit Committee is an operating committee that responsible to oversee the financial reporting and governance processes. As stated under Bursa Malaysia Listing Requirements, all companies listed in Bursa Malaysia should establish their own Audit Committee.

Discuss THREE (3) benefits and THREE (3) drawbacks of establishment audit committee in an organization. (12m) 2. Internal auditors roles include monitoring, assessing and analyzing organization risk and controls as well as confirming information related to the policies, procedures and laws. Thus, the work of internal auditor complements the work of the external auditor.

(a) Identify any FOUR (4) similarities function between internal audit and external audit (4m) (b) Explain THREE (3) benefits and THREE (3) drawbacks of establishment internal auditing department. (12m) 3. The International Standards on Auditing (ISA) 600 applies to group audits and special considerations that involve component auditors. The group engagement partner or principal auditor decides whether the group engagement team or a component auditor will perform the work on the financial information of a component auditor.

(a) Give FOUR (4) factors that need to be considered by principal auditor when planning to rely on the work of component auditor. (4 m) (b) Discuss any TWO (2) additional reporting requirements made by principal auditor when it comes to consol all groups financial statements. (4m)