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 marks | 4 |