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Chapter 9

1.2 Factors affecting the need for internal audit

Factors that affect the need for internal audit:

 The scale, diversity and complexity of the company’s activities

 The number of employees

 Cost/benefit considerations

 Changes in the organisational structures, reporting processes or underlying
information systems

 Changes in key risks (could be internal or external in nature)

 Problems with existing internal control systems

 An increased number of unexplained or unacceptable events.

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