Skip to content

CS Professional · Internal and Forensic Audit · Internal Audit Engagements and Planning

Ganga Steels Ltd's internal auditor is assigned specific responsibility for reviewing controls, evaluating their operation and recommending improvements, including tests on design, implementation and operating effectiveness of controls relevant to the external audit. Under SA 610 (Revised), which category of internal audit activity does this represent?

This is evaluation of internal control. SA 610 (Revised) says the internal audit function may be assigned responsibility for reviewing controls, evaluating their operation and recommending improvements, and may test their design, implementation and operating effectiveness to give assurance to management and those charged with governance.

  1. AEvaluation of internal controlCorrect
  2. BReview of compliance with management policies
  3. CActivities relating to governance
  4. DReview of economy and efficiency of operations

Explanation

SA 610 (Revised) lists evaluation of internal control as reviewing controls, evaluating their operation and recommending improvements, with tests of design, implementation and operating effectiveness. Compliance review focuses on laws, regulations and policies, so it is not the best fit.

Did you get it right without looking?

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

Practise Internal Audit Engagements and PlanningFree diagnostic mock

More Internal Audit Engagements and Planning questions