AUI3701_Assignment_3

MODULE CODE : AUI3701 QUESTION 3 3.1 Explain the purpose of performing a preliminary survey. Ans: The purpose of performing a preliminary survey is to obtain background information and establish a practical working knowledge of departmental objectives and procedures, available files and records and applicable laws, rules, and regulations. 3.2 Describe the two (2) types of flowcharts that can be used and when they are used. Ans: Process flowchart - is one of the most helpful flowcharts because it maps up the processes to be taken/followed during internal audit activity. Process flowcharts give a full listing of the major steps as well as the sub-steps in a process. Process flowcharts are helpful when identifying unnecessary steps within a certain process. System Flowcharts, Showing Controls at a Physical or Resource Level Program flow chart: It is a pictorial representation of all the instructions involved in a program to solve any problem. 3.3 Explain the reasons when narrative memoranda would be more appropriate than flowcharts to document the process. Ans: Narrative Memoranda A Narrative Memoranda would be more appropriate than flowchart because memorandum may be used to supplement the other forms of documentation by summarizing the auditor’s overall understanding of the control structure, individual components of the control structure, or specific control policies or procedures