Henry Fisher is an international real estate agent operating in Northern Peninsular Malaysia. The agency has some $200$ staff.

The board consists of six people, a part$-$time chairman, a chief executive, two full time executives $($i$.$e$.$ for commercial property and residential property$)$ and two representatives of the owners. The agency is jointly owned by Henry Fisher Agencies London and a property group Beruntung Land Berhad owned by Penang tycoon Datuk Lim Tee Pu$.$ The agency has an internal audit department consisting of a new Chartered Accountant Leong and Bee who is a CPA Australia third level student. Their secretary is Mavis. They report their monthly activities in detail to the board and to the audit committees of Henry Fisher Agencies London and Beruntung Land Berhad.

Required:

a$)$ Discuss the duties of an internal audit department. $[20$ marks$]$

b$)$ Describe how much reliance should the statutory auditors place on Leong and his staff$$s work. $[10$ marks$]$

c$)$ Draw up a checklist which the statutory auditor could use to assess the internal auditors as potentially being capable of producing work on which they could rely on$.[20$ marks$]$