Skip to content

CS Professional · Internal and Forensic Audit · Internal Audit Tools and Techniques

An internal auditor prepares a flowchart showing how a customer order moves from receipt to dispatch and billing at Meera Foods Ltd, marking where approvals and checks occur. What is the main purpose of this tool?

A flowchart is used to document and evaluate the internal control system. By showing how an order moves through each stage with approvals and checks, it helps the auditor understand the process and spot missing controls, bottlenecks or duplication, rather than computing samples or valuing balances.

  1. ATo compute the sample size for substantive tests
  2. BTo document and evaluate the internal control system and spot gaps in the processCorrect
  3. CTo confirm the existence of fixed assets
  4. DTo estimate the fair value of receivables

Explanation

A flowchart graphically depicts the flow of documents and activities, helping the auditor understand the system and identify missing controls or duplication. It does not calculate sample sizes, verify assets or value receivables.

Did you get it right without looking?

One question tells you little. A timed set on Internal Audit Tools and Techniques shows your real accuracy, how long you take and where you lose marks.

Practise Internal Audit Tools and TechniquesFree diagnostic mock

More Internal Audit Tools and Techniques questions