ACCA noter answer paper f8 2 6int 2006 jun a

Answers Part Examination – Paper 2.6(INT) Audit and Internal Review (International Stream) (a) June 2006 Anwers Control objectives Ordering of goods – Goods are only supplied to authorised customers – Orders are recorded correctly regarding price, quantity, item and customer details Despatch and invoicing of goods – Orders are despatched to the correct customer – All despatches are correctly recorded – Despatches only relate to goods ordered and paid for by customers – Invoices raised relate to goods supplied by the company (b) Audit tests on sales and despatch system Audit test Using test data if necessary, access ASG’s website site and input order details for specific goods Trace those order details to the orders pending file Reason for test Ensure that order details are completely and accurately recorded by the website software Ensure that details recorded agree to those input For a sample of items in the orders pending file, – agree to the orders awaiting despatch file, ensuring that appliance details and quantities are the same To ensure that details from the website software are completely and accurately transferred to the orders awaiting despatch file – agree sales details for that customer to the monthly reimbursement from the credit card company, checking amount received is the product price less the appropriate commission charged by the credit card company To confirm that amounts are received for each appliance sold, and therefore that monies received are complete and accurate – agree the sales amount to the sales ledger file To confirm that the amount of sales is not understated or overstated in the ledger, general ledger or financial statements Review goods awaiting despatch file for old items and inquire as to why those items are still on file To ensure that reasons for orders not being processed are being obtained A large number of old items may also indicate problems with the credit card authorisation systems which again will need to be investigated For a sample of days, cast the sales day book file and agree the total sales to the general ledger accounts for that day To check the numerical accuracy of the day book and the accuracy of posting to the general ledger file For a sample of items in the goods awaiting despatch file, agree to the despatch information held on the despatch department computer To confirm that order details are completely and accurately transferred to the despatch department For a sample of items on the despatch department computer, – agree back to the goods awaiting despatch file ensuring details of product, quantity and customer agree To ensure that the despatch information is accurate and that the despatch record itself relates to a valid sale – agree to the inventory records confirming that the correct appliance record was updated Ensures that the inventory system correctly records the appliance ordered and that the inventory system remains accurate – check customer signature is on file agreeing receipt of goods To confirm that evidence is available for receipt of goods confirming that goods have been delivered For a sample of items on the despatch department computer, review to see that evidence of delivery to customer is available Investigate records where no delivery information is available obtaining reasons for this To ensure that goods have been received and that procedures for investigating non-despatch or receipt are working Review the despatch department computer files for items not flagged ‘order complete’ Investigate and obtain reasons for these items To ensure that the despatch process is working correctly and that incomplete items are being investigated Note to candidates: The focus of the answer should be on substantive tests Compliance tests are allowable where they relate to the system described (a) (b) Audit work on railway trucks – Examine board minutes authorising the purchase of the trucks (authorisation) – Cast the non-current asset ledger; agree total of railway trucks to the general ledger and financial statements (completeness) – Ensure that railway trucks are actually stated as such in the non-current asset note As a material item, separate disclosure of this category is allowed (disclosure) – Cast the non-current asset note in the financial statements Ensure the note agrees to the amount disclosed in the balance sheet (disclosure) – For a sample of assets from the ledger, confirm existence by physically seeing the trucks (existence) – Identify the supplier of railway trucks from a purchase invoice Obtain all invoices from this supplier and confirm completeness of recording in the non-current asset register (completeness) Also, during non-current asset inspection, record details of some railway trucks and ensure those trucks are recorded in the non-current asset register – Examine a sample of purchase invoices to confirm ownership of the trucks (rights and obligations) – Review company policy for depreciation As this is a new category of non-current asset, obtain representation letter point regarding accuracy of amount Confirm with amount charged in similar companies that the depreciation percentage appears to be correct (valutation and allocation) – Agree depreciation charged in the non-current asset note to the amount on the profit and loss account (valuation and allocation) – Check a sample of depreciation calculations to ensure that they are accurate and that they conform to company policy (valuation and allocation) – Ensure that any sales tax has been correctly treated e.g capitalised where this is non-recoverable (valuation and allocation) – Current value may also be confirmed using a specialist or appropriate trade journal and compared to the net book value shown in the non-current asset register (valuation and allocation) Issues to raise with management Land and buildings The depreciation rate has been correctly applied at 2% – given an estimated life for the land and buildings category of 50 years However, the rate has been applied to the whole balance – that is land and buildings In most companies, the value of land is not thought to decrease and therefore depreciation is not appropriate To allocate depreciation accurately, a split is required between the land and buildings amounts in the financial statements Buildings will then be depreciated, but not the land Plant and machinery Depreciation has been charged in full in the year of acquisition, but not charged at all in the year of disposal This appears to be an appropriate accounting policy – charging depreciation in the year of disposal would only amend the profit or loss on sale in that year and so have a neutral effect on the financial statements There appears to be an error in the disposals calculation as the depreciation amount exceeds the cost being eliminated There does not appear to be any logical reason for this situation and it should be discussed with the directors to identify the reason, if any, for this treatment If an error is found, then the depreciation amount must be decreased (or cost eliminated increased) and the profit or loss on sale amended accordingly Motor vehicles – point The depreciation percentage stated in the financial statements is 33% However, the calculation is either 25% on the year end balance or about 21% on cost brought forward and additions for the year To be consistent, the non-current asset disclosure note must agree to the actual calculation in the non-current asset note The reason for the difference must be found and either the disclosure note or the depreciation calculation amended If there has been a change in the depreciation rate, then this must also be disclosed in the financial statements There has not been a change in accounting policy – the policy of depreciation is unchanged, it is only the method of applying that policy that has changed There is no need to amend the prior year figures Motor vehicles – point The cost and depreciation eliminated on sale are the same amount; this is not surprising given that the assets were fully depreciated However, the depreciation policy for motor vehicles is to depreciate the category over three years If those vehicles are now being kept for five years, then the depreciation rate may need revising to show the actual useful life of the vehicles The depreciation rate needs to be discussed with company management, and if necessary the rate amended to reflect the actual life of the vehicles 10 Memo From: A Manager, Tela & Co To: Jumper & Co Subject: Corporate Governance in the SGCC Company Date: 13 June 2006 As requested, I write to explain where your client SGCC does not appear to be following appropriate corporate governance codes and to recommend changes to ensure that the principles of good corporate governance are being followed Chief Executive Officer (CEO) and Chairman Mr Sheppard is both CEO and chairman of SGCC Corporate governance indicates that the person responsible for running the company (the CEO) and the person responsible for controlling the board (the chairman) should be different people This is to ensure that no one individual has unrestricted powers of decision I recommend that Mr Sheppard is either the CEO or the chairman and that a second individual is appointed to the other post to ensure that Mr Sheppard does not have too much power in SGCC Composition of board The current board ratio of executive to non-executive directors is 5:2 This means that the executive directors can dominate the board proceedings Corporate governance codes suggest that there should be a balance of executive and non-executive directors so this cannot happen A minimum of three non-executive directors are also normally recommended, although reports such as Cadbury note this may be difficult to achieve I recommend that the number of executive and non-executive directors is equal to help ensure no one group dominates the board This will mean appointing more non-executive directors to SGCC Director appointment At present, Mr Sheppard appoints directors to the board, giving him absolute authority over who is appointed This makes the appointment procedure and qualities directors are being appointed against difficult to determine Corporate governance suggests that appointment procedures should be transparent so that the suitability of directors for board positions can be clearly seen I recommend that an appointments committee is established comprising three non-executive directors to ensure there is no bias in board appointments Formal job descriptions should also be published making the appointment process more transparent Review of board performance It is correct that the performance of senior managers is reviewed, but this principle should also be applied to the board While Mr Sheppard may undertake some review, this is not transparent and it is not clear what targets the board either met or did not meet I recommend that performance targets are set for each director and actual performance assessed against these on a regular basis Reasons for underperformance should also be ascertained and where appropriate, changes made to the composition of the board Board pay At present, board members’ pay is set by Mr Sheppard This process breaches principles of good governance because the remuneration structure is not transparent and Mr Sheppard sets his own pay Mr Sheppard could easily be setting remuneration levels based on his own judgements without any objective criteria I recommend that a remuneration committee is established comprising three non-executive directors They will set remuneration levels for the board, taking into account current salary levels and the performance of board members Remuneration should also be linked to performance, to encourage a high standard of work Internal control The system of internal control in SGCC does not appear to be reviewed correctly While external auditors will review the control system, this review is based on their audit requirement and cannot be relied on to test the overall effectiveness of the system The system may therefore still contain weaknesses and errors I recommend that some more formal review of internal control is carried out, perhaps by establishing an internal audit department, as noted below The relationship with the company’s auditors must also be reviewed so that the work of the board and the auditors regarding internal control is understood by both parties Internal audit SGCC does not have an internal audit department Given the lack of formal review of internal control in the company, this is surprising Good corporate governance implies that the control system is monitored and that an internal audit department is established to carry out this task I recommend that an internal audit department is established, reporting initially to the audit committee who will monitor internal control and then summarise reports for the board Financial statements There appears to be acceptable disclosure in the financial statements regarding the past results of the company However, the board should also provide an indication of how the company will perform in the future, by a forecast review of operations or similar statement This is partly to enable investors to assess the value of their investment in the company I therefore recommend that the annual accounts of SGCC include some indication of the future operations of the company 11 Audit committee There is no mention in the report of an audit committee Good corporate governance implies that there is some formal method of monitoring external auditors as well as checking that the reports from the external auditors are given appropriate attention in the company I recommend that an audit committee is established – made up from non-executive directors The committee will receive reports from the external and internal auditors (as mentioned above) and ensure that the board takes appropriate action on these reports I hope this information is useful Please contact me again if you require any further assistance Sincerely Ann C Outent Note to candidates: An alternative and allowable answer format was to answer sections (a), (b) and (c) of the question separately Taking this approach would also allow other valid points in part (b) such as inability to obtain a stock exchange listing (a) Confidential information General rules Information obtained during an audit is normally held to be confidential; that is it will not be disclosed to a third party However, client information may be disclosed where: – – – Consent has been obtained from the client There is a public duty to disclose or There is a legal or professional right or duty to disclose However, these rules are general principles only; more detailed guidance is also available to accountants, as explained below ACCA’s Code of ethics – obligatory disclosure As noted above, ACCA’s Code of ethics confirms that when a member agrees to work for a client in a professional capacity, it is an implied term of that agreement that the member will not disclose a client’s affairs to any other person The recognised exceptions to this rule are where a member knows or suspects that his client has committed treason, or is involved in drug trafficking or terrorist offences In this situation, information must be disclosed to a competent authority The actual disclosure will depend on the laws of the jurisdiction where the auditor is located The auditor may also be obliged to provide information where a court demands disclosure Refusal to provide information is likely to be considered contempt of court with the auditor being liable for this offence ACCA Code of ethics – voluntary disclosure A member may also disclose client confidential information voluntarily, that is without client permission, in a limited number of situations (b) – To protect a member’s interest e.g to allow a member to sue a client for unpaid fees or defend an action for negligence – Where there is a public duty to disclose e.g the client has committed an action against the public interest such as unauthorised release of toxic chemicals Independence risks Audit partner – time in office Mr Grace has been the audit partner of Ancients for eight years His objectivity for the audit may be threatened by the ongoing close relationship with the client In other words, he may be too friendly with the directors of Ancients This means he may not be willing or able to take difficult decisions such as issuing a modified audit report for fear of prejudicing his friendship with the directors Rotating the audit partner would remove this threat Unpaid taxation fees Ancients has not paid the taxation fees for work that took place nearly six months ago The non-payment of fees can be a threat to objectivity similar to that of an unpaid loan In effect, McKay is providing Ancients with an interest free loan The audit partner in McKay may not wish to issue a modified report for fear that the client leaves and the ‘loan’ is not repaid The unpaid fee must be discussed with the directors in Ancients and reasons for non-payment obtained McKay may wish to delay starting the audit work for this year until the fee is paid to remove the potential independence problem If the fee is not paid at all then McKay may decline to carry out the audit Fee income No details are provided regarding fee income obtained from Ancients However, the company is growing rapidly and McKay does provide other services besides audit As a limited liability company, McKay should ensure that no more than 10% of its recurring practice income (including auditing, accountancy and other work combined) is derived from this client Obtaining more than 10% could indicate undue financial reliance on one client, and impair objectivity regarding the audit report (again fear of issuing a modified report and losing the fee income from the audit client) If the 10% limit is close, McKay may have to limit other services provided so that independence is not impaired An annual review will be required on clients where the fee is between and 10% to ensure that the fee income rules will not be breached 12 Allyson Grace Allyson Grace is not deemed to be connected to Mr Grace because she is presumably over the age of 18 If she was still a minor, then there would be a connection and it would be inappropriate for Mr Grace to be the audit partner as he could in theory influence Allyson’s decisions However, there may still appear to be an independence problem as Mr Grace may not be objective in making audit decisions He may not wish to annoy his daughter by having to qualify the financial statements Appointing another audit partner would remove the perceived independence problem Meal The offer of a meal by Allyson may appear to be a threat to independence; having received an expensive meal, the audit staff may be favourably disposed towards Ancients and be less inclined to investigate potential errors Audit staff are allowed to receive modest benefits on commercial terms; whether there is a benefit depends on how expensive the meal is To ensure no independence issues it would appear that the invitation should be declined One possible option would be for Mr Grace and Allyson to pay personally as a purely social event even though this may be unlikely However, this does not remove the implied independence issue (a) (b) Factors to consider when evaluating and testing the work of the internal auditor include: – A check that the work is performed by persons having adequate technical training and proficiency as internal auditors, by ensuring appropriate training programmes are in place and the auditor has appropriate qualifications – Ensuring that the work of assistants is properly supervised, reviewed and documented by reviewing the procedure manuals of internal audit and the audit working papers produced – Determining that sufficient and appropriate audit evidence is obtained to afford a reasonable basis for the conclusions reached, again by reviewing the internal auditor’s working papers – Checking that the conclusions reached are appropriate in the circumstances and that any reports prepared are consistent with the results of the work performed by reviewing the work performed and the reports produced – Ensuring any exceptions or unusual matters disclosed by internal audit are properly resolved by the external auditor and management (i) Objectives of internal audit Year end inventory count The main aim of the year end inventory count is to ensure that the figure for inventory in the financial statements is accurate The objective of the internal audit department is to check the accuracy of the inventory count to ensure that the physical goods inventory is correctly stated on the inventory sheets This objective is achieved by checking the control system over counting inventory Internal audit work will involve ensuring that all inventory is counted, teams of two people are counting inventory, and then performing test counts to determine the accuracy of the test counts Internal controls over procurement systems The internal auditor will be ensuring that the procurement system is achieving its key objectives and operating according to company guidelines Specific aims will include: – – – Ensuring purchases are authorised Quantity discounts are obtained Inventory received is recorded on goods received notes or similar Reviewing operations of the marketing department The internal auditor will review the work of the marketing department with aims such as ensuring that the process is being managed effectively and information is available to the marketing manager as required Where deficiencies in the information provided are noted, then an internal audit report will highlight those deficiencies and make recommendations for improvement to the information systems The objectives of internal audit in this case are more to ensuring the efficiency of operations rather than any specific financial objective (ii) Objectives of the external auditor Year end inventory count The external auditor also needs to ensure that the figure for inventory is materially correct for the financial statements Part of the work of the external auditor is to attend the physical inventory count to ensure that the quantities and condition of inventory is correctly recorded Given that ZPM does not appear to have any perishable inventory, the main objective will be to ensure correct recording of inventory quantity Internal controls over procurement systems The external auditor will test the procurement system with the overall objective of determining that the purchases and payables figures in the financial statements are correct The objectives of testing will be to ensure that the control system over procurement is operating efficiently, and ensure complete and accurate recording of purchases and payables liabilities If errors are found then this implies that the financial statements could also contain errors 13 Reviewing operations of the marketing department As the operations of the marketing department not normally impact on the financial statements, the external auditor may not actually review this function (iii) Reliance by the external auditor Year end inventory count ZPM has 103 stores – which is likely to mean that the external auditor will not be able to attend the inventory count in all stores, simply due to lack of staff However, if inventory count procedures are the same at all stores, then reliance can be placed on the internal auditor to attend some stores and check that the internal control systems are being correctly applied in those stores This reliance does not mean that the external auditor does not carry out any work; the external auditor will compare results from stores tested with those of the internal auditor Results should be about the same; any differences in terms of errors found will be investigated, and reasons for those differences obtained Internal controls over procurement systems The external auditor may rely on the work of the internal auditor regarding the procurement systems, where the work of the internal auditor is relevant to the financial statements Some areas such as ensuring quantity discounts are obtained are less important than ensuring completeness of recording of liabilities Again, the external auditor must perform some work on the procurement systems; the presence of an internal auditor simply means that the work can be reduced Reviewing operations of the marketing department Given that the external auditor does not need to review the operations of the marketing department then no formal reliance is needed on the work of the internal auditor However, internal audit reports may be reviewed to determine, for example, the effectiveness of advertising spend etc to help determine the going concern situation of the company In the case of ZPM, the effectiveness of advertising new stores could be reviewed Flat SG1 Community Gardens Long Road Anytown 17 June 2006 Dear Jayne I am pleased you are also thinking about accountancy as a career and understand your concern regarding the use of Auditing Standards I will try and explain the need for standards in this letter The working procedure of the IAASB to produce an ISA The start of the process of producing an International Standard on Auditing (ISA) is for a subcommittee of the International Audit and Assurance Standard Board (IAASB) to determine appropriate areas for an ISA, or to note where existing ISAs need amendment The subcommittee produces an exposure draft on that subject, initially for consideration by the IAASB If the IAASB approve the exposure draft, then it is circulated to the member bodies of the International Federation of Accountants (IFAC) and any other organisations that have an interest in auditing standards and published on the IAASB website These bodies make comments on the exposure draft Comments are sent back to the IAASB and the exposure draft is amended as necessary Finally the exposure draft is re-issued as an ISA or an International Auditing Practice Statement (IAPS) The whole process can take between one and two years The overall authority of ISAs and how ISAs are applied in individual countries ISAs are designed to be applied in the audit of financial statements and may be applied to the audit of other historical financial information Each ISA contains the basic principles and procedures to apply to that ISA (identified by bold type in the ISA itself) Other text in the ISA provides guidance on the implementation of the principles In other words, to apply the ISA, the whole of the text, not simply the parts in bold type, must be read and understood ISAs are not designed to override the requirements for the audit of entities in individual countries So if our country did not require an audit of specific entities, then the ISAs would not overrule that requirement Regarding the detailed requirements of an audit, such as the nature of testing or the issuing of an engagement letter, where our country requirements meet those of the ISA, then the ISA will be used It is therefore unlikely that our country would issue a separate auditing standard; the ISA would be sufficient Where our local codes on audit differ from the ISA, then the local requirements are used However, we are encouraged to introduce changes in our country so that the requirements of the ISA are met For example, our country may require an engagement letter to be signed every five years, but the ISA requires one every year In this case, local change is needed to comply with the ISA 14 The extent to which an auditor must follow ISAs An auditor should follow the ISAs wherever possible However, in some situations an auditor may consider it necessary to depart from the ISA so that the objectives of the audit can be achieved more efficiently In this situation, the auditor can depart from the ISA, but he or she must be prepared to justify the departure It is expected that departure from any ISA will be the exception rather than the rule The extent to which ISAs apply to small entities To be clear, ISAs are meant to be applicable to the audit of any entity, no matter what its size However, in small entities, the auditor may have to amend the audit approach to fit the circumstances of that business For example, there will be greater reliance on substantive testing and management representations However, the appropriate ISAs should be followed Conclusion I hope that this clarifies your understanding of ISAs Please let me know if I can be of further assistance to you in your accountancy career Yours sincerely, Rajit Grey 15 Part Examination – Paper 2.6(INT) Audit and Internal Review (International Stream) June 2006 Marking Scheme Marks (a) One mark for each valid control objective Supply of goods – good credit card rating Orders correctly recorded Orders despatched to correct customer Despatches correctly recorded Despatches relate to orders Invoices relate to goods supplied Other similar correct points (each) 1 1 1 ––– ––– Maximum marks (b) Key points for each test and 0·5 for explanation of why the test is required Input of order details Orders pending to despatch file Completeness of receivables – credit card company Orders pending to receivables file – sales complete Review orders pending file – old items Cast receivables ledger – completeness Goods awaiting despatch file to despatch department Despatch department – agree back to orders awaiting despatch Update of inventory records Customer signature for receipt of goods Incomplete information despatch department computer Items not flagged ‘order complete’ despatch department computer Other good relevant points (each) Maximum marks (a) One mark for each valid test Board minute Non-current asset ledger Non-current asset note See trucks Completeness of recording Purchase invoice Depreciation policy OK? Depreciation disclosure amount Depreciation accurate calculation Treatment of any sales tax Confirm NBV using specialist or trade journal 1 1 1 1 1 Other relevant points (each) ––– 10 ––– Maximum marks (b) 1·5 1·5 1·5 1·5 1·5 1·5 1·5 1·5 1·5 1·5 1·5 1·5 1·5 ––– 15 ––– Key points up to marks for explaining the problem and mark for stating the solution Land and buildings – depreciation of land Plant and machinery – depreciation eliminated > cost Motor vehicles – depreciation calculated not = disclosure note Motor vehicles – may be depreciating too quickly Other relevant points Maximum marks 17 3 3 ––– 10 ––– Marks mark for identifying the corporate governance problem, for explaining why this is a problem and for recommending a solution CEO and chairman Composition of board Director appointment Review of board appointment Board pay Internal control Internal audit Financial statements Audit committee Other relevant points (each – but limit to 1·5 marks if not mentioned in the scenario) 3 3 3 3 1·5 Memo format/why writing ––– 20 ––– Maximum marks (a) General rules Statement don’t normally disclose without good reason Simply stating rules Client consent Public duty to disclose Legal or professional duty to disclose ACCA Code of ethics – obligatory disclosure Implied agreement not to disclose Exemptions Disclose to proper authority Court demands disclosure ACCA Code of ethics – voluntary disclosure (0·5 area 0·5 example) Protect members interest Public duty Also allow other ethics where appropriate – e.g person not considered fit and proper to carry out work 1 1 1 1 1 Allow jurisdiction specific comments ––– ––– Maximum marks (b) Mark allocation: for identifying and explaining area for explaining why an ethical issue for the resolution of the problem Gives potential for marks per section Areas for discussion per the scenario Audit partner – time in office Unpaid taxation fees Fee income Allyson Grace Meal Rapid growth Technical competence (cope with increased size of client) Sufficient staff to allow rotation ––– 12 ––– Maximum marks 18 Marks (a) One mark for each valid point Training and proficiency Work supervised and reviewed Evidence available to support opinion Conclusions reached are appropriate Unusual matters correctly resolved 1 1 ––– ––– Maximum marks (b) Inventory count (i) Check of control system over counting inventory Examples of control system e.g counting in teams Carrying out test counts Not relevant – carrying out counts by internal audit (ii) Ensure inventory materially correct for FS Attend inventory count to check control system/quantities Note ZPM focus on quantities + reason (iii) Rely on IA to test control systems – lack of staff and 103 stores Does not mean not carry out any work Review differences between IA and external auditor results Procurement system (i) Company policies followed Example of policy – no specific ones required (ii) Purchases and payables figures correct in FS Control system for procurement working effectively (iii) External auditor rely on IA where work relevant for FS audit Work reduced only – still carry out some testing Marketing (i) Aims such as ensuring information available (ii) External auditor not interested – not impact FS (iii) No reliance needed Maximum marks 19 1 1 1 1 1 1 1 1 1 ––– 15 ––– One mark for each valid point (a) Due process to produce an ISA Subcommittee – areas for ISAs Exposure draft via IASSB and issued Comments on exposure draft (ED) Amendment of ED and issue of ISA Other relevant points (each) 1 1 ––– ––– Maximum marks (b) Authority of ISAs Apply to audit of FS May apply to other statements Basic principles in bold type Explanatory text in normal type Must read all ISA to understand application ISA not override requirements of national countries Where relevant country use ISA and not issue own guidance National requirements differ – use national Adopt changes so that the ISA can be used Other relevant points (each) Maximum marks (c) Extent to which auditor follow ISAs Should follow wherever possible Do not follow where audit more efficient Must justify departure Other relevant points (each) 1 1 ––– ––– Maximum marks (d) 1 1 1 1 1 ––– ––– ISAs apply to small entities Applicable to any entity Appropriate ISAs to be followed Letter format/why writing Other relevant points (each) 1 1 ––– ––– Maximum marks 20 ... further assistance Sincerely Ann C Outent Note to candidates: An alternative and allowable answer format was to answer sections (a) , (b) and (c) of the question separately Taking this approach would... the IAASB to produce an ISA The start of the process of producing an International Standard on Auditing (ISA) is for a subcommittee of the International Audit and Assurance Standard Board (IAASB)... having adequate technical training and proficiency as internal auditors, by ensuring appropriate training programmes are in place and the auditor has appropriate qualifications – Ensuring that