8 elements of internal audit charter

8 elements of internal audit charter

The internal audit charter is a formal document that defines the internal audit activity’s purpose, authority and responsibility

The following are elements of the internal audit charter

  • The purpose of the internal audit activity
  • The scope of the internal audit activities
  • The responsibilities of the internal audit activity
  • The relationship and coordination with the external auditor
  • The audit plan
  • The
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Are auditors allowed to prepare financial statements?

According to international standard on auditing 200 the auditor need to maintain his independence to undertake audit assignment. To maintain his independence audit is prohibited from undertaking management decision of the client including preparing his financial statements since this can lead to self-review threat fundamental principal of accountants code of ethics.

To ensure that auditor … Read the rest

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What is the difference between audit and compliance?

Audit is an independent examination of business financial statements so as to issue opinion on whether the financial statement are prepared in accordance with acceptable financial reporting framework and show true performance and position of the business. Audit is conducted according to the requirements of countries laws and regulations and international standard on auditing. The auditor when conducting audit aim … Read the rest

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CVP Analysis revision question (NBAA November 2016)

Midundo kabambe a manufacturer of electronic equipment, decided to analyze the profitability of new portable compact disc (CD) player. On CD player line, the company incurred TZS.2,520,000,000 of fixed cost per month while obtaining total revenue  of TZS.6000,000,000 from selling 20,000 units. The variable cost was TZS 120,000 per unit
Recently a new machine used in production of CD player … Read the rest