1.1 Two Types of Services the Internal Audit Function Can Provide to Wha-up Ltd:
1. Assurance Services
Assurance services ensure that the organization’s internal controls and risk
management processes are functioning effectively. This type of service aims to verify
that the company's operations comply with laws, regulations, and internal policies.
2. Advisory Services
Advisory services provide management with expert advice on improving operations,
achieving strategic goals, and managing risks. It includes offering recommendations
and suggestions that can help improve organizational performance.
1.2 Classification of Services:
1. Providing training and facilitating workshops to add value and improve current
processes and procedures
o Type: Advisory Services
This is a consultative service aimed at enhancing knowledge and improving
organizational processes through training and workshops.
2. Examining whether control procedures mitigate risks that have been identified
o Type: Assurance Services
This service provides an independent assessment of the effectiveness of
internal control procedures in mitigating identified risks.
3. Reviewing the reliability of records
o Type: Assurance Services
This service is designed to assess the accuracy and reliability of company
records, ensuring that they reflect the true state of affairs and are in line with
regulations.
4. Recommending areas of improvement or change in an advisory capacity
o Type: Advisory Services
Internal audit recommends improvements to processes or procedures, with a
focus on providing practical advice to enhance operational efficiency.
5. Providing advice on governance, risk management, and control processes
o Type: Advisory Services
This involves offering advice and guidance on strengthening governance
frameworks, risk management strategies, and internal controls, focusing on
helping management improve these areas.
Question 02
2.1 Definition of Performance Auditing to Management:
Performance auditing is the process of evaluating an organization’s operations to determine if
it is achieving its goals in an efficient, effective, and economical manner. It involves
assessing performance against set objectives, verifying the use of resources, and ensuring that
the branch is meeting its targets. For example, for Wha-up Ltd, this could involve auditing
whether the delivery section is fulfilling its orders on time and within budget.
2.2 Key Characteristics of Performance Auditing:
1. Assurance Services
Assurance services ensure that the organization’s internal controls and risk
management processes are functioning effectively. This type of service aims to verify
that the company's operations comply with laws, regulations, and internal policies.
2. Advisory Services
Advisory services provide management with expert advice on improving operations,
achieving strategic goals, and managing risks. It includes offering recommendations
and suggestions that can help improve organizational performance.
1.2 Classification of Services:
1. Providing training and facilitating workshops to add value and improve current
processes and procedures
o Type: Advisory Services
This is a consultative service aimed at enhancing knowledge and improving
organizational processes through training and workshops.
2. Examining whether control procedures mitigate risks that have been identified
o Type: Assurance Services
This service provides an independent assessment of the effectiveness of
internal control procedures in mitigating identified risks.
3. Reviewing the reliability of records
o Type: Assurance Services
This service is designed to assess the accuracy and reliability of company
records, ensuring that they reflect the true state of affairs and are in line with
regulations.
4. Recommending areas of improvement or change in an advisory capacity
o Type: Advisory Services
Internal audit recommends improvements to processes or procedures, with a
focus on providing practical advice to enhance operational efficiency.
5. Providing advice on governance, risk management, and control processes
o Type: Advisory Services
This involves offering advice and guidance on strengthening governance
frameworks, risk management strategies, and internal controls, focusing on
helping management improve these areas.
Question 02
2.1 Definition of Performance Auditing to Management:
Performance auditing is the process of evaluating an organization’s operations to determine if
it is achieving its goals in an efficient, effective, and economical manner. It involves
assessing performance against set objectives, verifying the use of resources, and ensuring that
the branch is meeting its targets. For example, for Wha-up Ltd, this could involve auditing
whether the delivery section is fulfilling its orders on time and within budget.
2.2 Key Characteristics of Performance Auditing:
