Bush

1. Up to 1 mark per well described procedure and up to 1 mark for a valid audit test, overall maximum of 2 marks per type of procedure and test, maximum of 5 marks for procedures and maximum of 5 marks for tests.

• Inspection
• Observation
• Analytical procedures
• Inquiry
• Recalculation
• External confirmation
• Reperformance

2. Up to 1 mark per well explained point Internal audit (IA) can assess fraud risk and develop controls to mitigate fraud Regular reviews of compliance with these controls Where fraud suspected, IA can undertake detailed fraud investigation Existence of IA department acts as a fraud deterrent

3. Up to 1 mark per well described limitation Lack of independence as employees of the company No requirement to be professionally qualified Cost of establishing department Possible resistance from existing employees to idea of being audited

4. Up to 1 mark per well described point Monitoring asset levels Cash controls testing Customer satisfaction levels Financial/operational controls IT system review Value for money review Regulatory compliance