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Internal audit function The internal audit function consists of Peter Locker, the CAE, two internal audit managers, three senior internal auditors and six internal auditors.
Internal audit function
The internal audit function consists of Peter Locker, the CAE, two internal audit managers, three senior internal auditors and six internal auditors. There is an internal audit charter in place.
An extract from some of the sections and of the internal audit charter reads as follows:
TL
Organisation
The CAE shall report to the board administratively and functionally to the CEO.
Independence and Objectivity
The chief audit executive will ensure that the internal audit activity remains free from all conditions that threaten the ability of internal auditors to carry out their responsibilities in an unbiased manner, including matters of audit selection, scope, procedures, frequency, timing, and report content.
Internal auditors will have no direct operational responsibility or authority over any of the activities audited. The internal auditors should assist with specific operational responsibilities when requested.
Responsibility
The Chief Audit Executive and the internal audit staff has the responsibility to:
a Submit annually to senior management and the board a riskbased internal audit plan for notification purposes.
b Ensuring that the internal audit function collectively possesses or obtains the knowledge, skills and other competencies needed to meet the requirements of the internal audit charter.
c Set the risk appetite for the organisation and review the management of key risks.
d Issue quarterly reports on the results of the audit activities to management and the board, after its approval by the CEO.
ApprovalSignature
Chief Audit Executive Date
Chief Executive Officer Date
TL
REQUIRED Marks
Explain the instances of nonadherence to the recommended practices outlined in the King IV Report on Corporate Governance for South Africa relating to:
a the composition of the governing bodyboard and
b the composition and the sufficiency of the board committees.
Provide your answer in the following format:
No
King IV requirement mark each
Instance of nonadherence in Delta Development Ltd mark each
Review the internal audit charter above according to the Global Internal Audit Standards, identify and explain shortcomings and recommend improvements to the charter.
Provide your answer in the following format:
No
Identification and explanation of
deficiencyshortcoming
identified
mark each
Quote from Global Internal Audit Standards
mark each
Recommendation to the internal audit charter eg indicate if a certain part should be taken out or if rewritten rewrite how it should be
mark each
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