Question 1c
Marking Guide
reliance on internal audit
generally 1 mark for each discussion point:
– impact on audit strategy, e.g. reliance on controls
– impact on audit planning, e.g. systems documentation/business understanding
– specific work can be performed, e.g. inventory counts
– could lead to significant reduction in audit costs, e.g. travel costs can be avoided
– need to evaluate how much reliance can be placed (objectivity, competence, quality control, etc) –
up to 3 marks
– reliance will impact group audit as well as individual audit
– pressure on fee is an intimidation threat
– fee unlikely to be maintained given the change in group structure
maximum marks
7
professional marks to be awarded for:

– use of headings
– introduction
– logical flow/presentation
– conclusion
maximum marks4

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