Page 173 - SBL Integrated Workbook STUDENT 2018

Audit and compliance

1.3 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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