Part A

Sun$-$look Ltd is responsible for selling and distributing various types of sunglasses through

their online shop.

Sun$-$look expanded their operations during the past few years and recently established an

internal audit function.

Thabo Ndlovu has been appointed as the internal audit manager. It became clear to Thabo

that the concepts of independence and organisational independence are terms that senior

management is unfamiliar with.

Thabo decided to prepare a presentation on independence and present it at the next

management meeting.

REQUIRED

Marks

$1\mathrm{.}1$ Define independence as it pertains to an internal audit function and explain

the reporting relationship that should be in place to obtain organisational

independence.

$1\mathrm{.}2$ Explain to senior management what independence means for internal

auditors.

Part B

During the first board meeting it became clear that the board of Sun$-$look Ltd are unsure of the

internal audit function's responsibilities regarding assistance to management and the

governance processes.

REQUIRED

$1\mathrm{.}3$ List and describe the four functions of management.

$1\mathrm{.}4$ Provide examples to senior management on how internal audit can assist

management.

$1\mathrm{.}5$ Describe the terms governance, risk, and control.

$1\mathrm{.}6$ Describe the responsibilities that the internal audit function is required to

perform to improve the governance processes of an organisation by referring

to the Institute of Internal Auditors $($IIA$)$ Standards.