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    Written Test - Internal Auditor

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    Yasir Arafat
    As the internal auditor for United Purpose, I would address several key risks and compliance issues. I would identify procurement fraud, payroll discrepancies, and lack of documentation for cash distributions as major audit risks for Partner NGO D. For the EU-funded project, I would recommend submitting an interim report after 24 months that includes a narrative of progress and expenditures compared to budget. Variations in expenditures for the first year would need to be addressed by identifying reasons for over- or underspending and taking steps to align future budgets and costs. Effective risk management and internal controls are essential to mitigate fraud and ensure proper use of funds.

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    Written Test - Internal Auditor

    Uploaded by

    Yasir Arafat
    2K views2 pages
    As the internal auditor for United Purpose, I would address several key risks and compliance issues. I would identify procurement fraud, payroll discrepancies, and lack of documentation for cash distributions as major audit risks for Partner NGO D. For the EU-funded project, I would recommend submitting an interim report after 24 months that includes a narrative of progress and expenditures compared to budget. Variations in expenditures for the first year would need to be addressed by identifying reasons for over- or underspending and taking steps to align future budgets and costs. Effective risk management and internal controls are essential to mitigate fraud and ensure proper use of funds.

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    Written Test_Internal Auditor

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    As the internal auditor for United Purpose, I would address several key risks and compliance issues. I would identify procurement fraud, payroll discrepancies, and lack of documentation for cash distributions as major audit risks for Partner NGO D. For the EU-funded project, I would recommend submitting an interim report after 24 months that includes a narrative of progress and expenditures compared to budget. Variations in expenditures for the first year would need to be addressed by identifying reasons for over- or underspending and taking steps to align future budgets and costs. Effective risk management and internal controls are essential to mitigate fraud and ensure proper use of funds.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    2K views2 pages

    Written Test - Internal Auditor

    Uploaded by

    Yasir Arafat
    As the internal auditor for United Purpose, I would address several key risks and compliance issues. I would identify procurement fraud, payroll discrepancies, and lack of documentation for cash distributions as major audit risks for Partner NGO D. For the EU-funded project, I would recommend submitting an interim report after 24 months that includes a narrative of progress and expenditures compared to budget. Variations in expenditures for the first year would need to be addressed by identifying reasons for over- or underspending and taking steps to align future budgets and costs. Effective risk management and internal controls are essential to mitigate fraud and ensure proper use of funds.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 2

    United Purpose

    Written Test for Internal Auditor


    Date: March 08, 2021
    Time: 1.30 Hours; Full marks: 50

    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.

    6. United Purpose is implementing projects through partner NGOs. You are 15


    assigned by the Country Director to conduct internal audit of a Partner NGO “D”
    and report. The area of your audit will be on procurement of materials, cash
    distribution to beneficiaries and payment of salary.

    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?

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