Syllabus F2/F3. Audit and Compliance 2 / 2

a) Examine the need for an internal audit function in the light of regulatory and organisational requirements.
b) Justify the importance of auditor independence in all client-auditor situations (including internal audit) and the role of internal audit in compliance.
c) Respond credibly to requests and enquiries from internal or external auditors.
d) Justify the importance of having an effective internal audit committee overseeing the internal audit function.
e) Assess the appropriate responses to auditors’ recommendations.

a) Justify the need for reports on internal controls to shareholders.
b) Discuss the typical contents of a [2] report on internal control and audit.
c) Assess how internal controls underpin and provide information for reliable financial reporting.
Audit and Compliance