2.21 Establishing an internal audit department ** You are the external auditor of Fringe and Stock Ltd. The CEO, Norbert Fringe, has contacted you because the company is considering setting up an internal audit department for the first time and he is looking for some guidance as to what is required for an effective internal audit department. Required: Explain the key considerations Norbert Fringe should consider when setting up an internal audit department.

Professional Questions

2.25 Outsourcing internal audit ** You have been the in-charge on the audit of Crake Stroom for the last two years and you have built up a good professional relationship with the Finance Director, Cynthia Plant. She has been very happy with the professionalism and efficiency with which you and your firm have carried out the external audit. Cynthia is currently conducting a review of the company's internal audit department and has asked for your thoughts on your firm carrying out this work. Required Prepare notes for a meeting with Cynthia Plant which highlights the advantages and disadvantages of the external auditor conducting internal audit work.

2.21 Establishing an internal audit department ** You are the external auditor of Fringe and Stock Ltd. The CEO, Norbert Fringe, has contacted you because the company is considering setting up an internal audit department for the first time and he is looking for some guidance as to what is required for an effective internal audit department. Required Explain the key considerations Norbert Fringe should consider when setting up an internal audit department. Professional Questions 2.25 Outsourcing internal audit ** You have been the in-charge on the audit of Crake Stroom for the last two years and you have built up a good professional relationship with the Finance Director, Cynthia Plant. She has been very happy with the professionalism and efficiency with which you and your firm have carried out the external audit. Cynthia is currently conducting a review of the company's internal audit department and has asked for your thoughts on your firm carrying out this work. Required Prepare notes for a meeting with Cynthia Plant which highlights the advantages and disadvantages of the external auditor conducting internal audit work