APC, a company has 300 employees, the board consists of 6 people, a part time chairman, the chief executive, 2 other full time executives and 2 representatives of the owners. The company is fully owned by ABC bank and Yellow groups of company. The company has an internal Audit department consisting of Ama who is a young chartered accountant and Adwoa who is an accounting technician. They also have a secretary, Mavis. They record their activity monthly details to the board to Audit committee of the Yellow Banking and ABC bank.

Required:

1. What work will the internal Audit department do.

2. In what ways did the external Auditors rely on their work.

3. Draw up a check list which the external auditor produce to assess the internal auditors as being capable of producing work on which the external Auditors may rely.