Question 1: Your client, DLC Ltd, has written to you saying he has been considering setting up an internal audit department however has heard from its legal adviser that it would be better off abandoning this idea and getting the external auditor to do some assurance work rather. Its legal adviser as well claimed that if the external auditor does some work for the company, there would be no requirement to have an internal audit.
Required:
a) Write a letter to the management of DLC Ltd. describing the objectives, characteristics and responsibilities of internal and external audit.
b) Internal auditing is an integral portion of the corporate governance mosaic in both the public and the private sectors. This is an efficient tool for corporate Governance
Required:
i) Define the given terms:
• Internal Auditing
• Corporate Governance
ii) Describe how internal auditing contributes to good corporate governance.