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Written Test - Internal Auditor
Written Test - Internal Auditor
1. What is the internal control system? How If you are given a task to prepare an 9
Internal Control Policy, what will you consider / include in the policy. Why it is
important for an organization? How it works?
2.
3. What are the compliances and/or ethics – related challenges you faced most 5
frequently in your previous job as an internal auditor? How will you report those?
4. Why active risk management is essential for the management of an 6
organization? As an Internal Auditor, how do you help management to reduce
the risk?
Active risk management reduces or eliminates the risk of negative
consequences of particular transaction or weaknesses in an entire internal
control system. We should keep in mind that effective control should be in place
to deter fraud and error. There is no benefit of a control system which can not
deter or prevent fraud or error causing financial loss.
How to reduce:
1. Identify the most significant area of risk.
2. assess the likelihood of occurrence.
3. assess the impact if risk materializes
4. apply appropriate safeguard.
5. regular monitor the control system and where necessary change or modify.
5. What do you see as the main audit risks that an International NGO like United
Purpose may face and how would you address them.
i. While checking personnel file, you found Mr. Abdur Rahim joined on 1-1-
2020 as PC, salary per month is BDT 75,000. You find resignation letter
dated 31-05-2020, the date was tempered. In the body of the resignation
letter, he mentioned his working period is up to 31-03-2020. Salary for the
month of April and May was paid by bearer cheques dated 30-04-2020
and dated 31-05-2020.
ii. A laptop was purchased from M/S Ashiyana enterprise, a renowned
construction materials supplier; Comparative statement showed two other
vendors who sell computer and electronics material. The quotations
writing style is similar.
iii. On checking the documents of cash for work, you found all documents
are on line. Total BDT 16,000,000.00 distributed to 2000 HH. You are to
tell what documents you checked in relation to cash distribution for cash
for work. You also visited 5 beneficiaries’ houses theyand they informed
you that they have not received any cash.
7. United Purpose is implementing a project funded by EU for 5 years. The project 5
already passed 24 months. When the interim report will be required to submit
and what shall be the attachment with the report?
8. The total budget of the above project and expenditure for year 1 is as follows: 10
Line item Total Budget Budget Yr 1 Expenditure Yr Variation
Euro 2 Euro
Human resource 341,000.00 185,845.0
170,500.00 0
Travel 50,000.00 29,750.0
25,000.00 0
Equipment and supplies 19,500.00 12,675.0
9,750.00 0
Local office costs 50,000.00 30,000.0
25,000.00 0
Other costs and services 27,000.00 14,175.0
13,500.00 0
Activity costs 487,500.00 235,000.0
243,750.00 0
Total 975,000.00 507,445.0
487,500.00 0
You are to find-out reasons of variation and what steps are required to address in this
situation?