Question 1What are auditor’s responsibilities in relation to:a)Understanding a client’s internal control system了解客户的内部控制系统The auditing standards required that the auditor understand the client’s system of internal control审核标准要求审核员了解客户的内部控制系统b)Testing of a client’s internal control system?测试客户的内部控制系统？The auditor chooses whether or not to rely on a client’s system of internal control. If the auditors believes the internal control system is strong and that audit time can be used effectively by testing internal control (i.e. the auditor expects to be able to rely on internal control to reduce substantive testing) then the auditor will test internal control. If the auditor decides not to rely on internal control wither because it is weak or substantive testswill provide better evidence then the auditor can choose not to test internal controls.审核员选择是否依赖客户的内部控制系统。如果审计员认为内部控制系统强大，并且审计时间可以通过测试内部控制（即审计员期望能够依靠内部控制来减少实质性测试）有效地利用，那么审计员将测试内部控制。如果审核员决定不依赖内部控制，因为它薄弱，或者实质性测试将提供更好的证据，那么审核员可以选择不测试内部控制。c)Reliance on a client’s internal control system?依赖客户的内部控制系统？It is the auditor’s decision – no need to rely on internal controls if the auditor decides to undertake predominately substantive tests.这是审计师的决定——如果审计员决定进行主要实质性测试，则无需依赖内部控制。Question 2NBA Ltd is a large banking organisation. It has an internal audit department consisting of amanager and three auditors. All the members of the internal audit team are charteredaccountants and all have previously worked in the audit departments of the Big 4 accountingfirms. The manager of the audit department reports to the CFO. Copies of audit reports areroutinely sent to the audit committee, to the CFO and to the individual responsible for thearea or activity which was audited. The internal auditors assist the accounting departmentby performing some accounting tasks. This occurs when accounting staff are on leave and atyear end when the accounting department is extremely busy.NBA有限公司是一家大型银行组织。它有一个内部审计部门，由一名经理和三名审计员组成。内部审计小组的所有成员都是特许会计师，以前都在四大会计师事务所的审计部门工作。审计部门的经理向首席财务官报告。审计报告的副本定期发送给审计委员会、首席财务官和对被审计地区或活动负责的个人。内部审计员通过执行一些会计任务来帮助会计部门。当会计人员休假时，在会计部门非常繁忙时，在年终时，就会发生这种情况。Comment on the extent of reliance the external auditor should place on the work of NBALtd’s internal auditors.评论外部审计师对NBA有限公司内部审计师工作的依赖程度。Students should raise the following issues:学生应提出以下问题：Strengths of internal audit dept:内部审计部门的优势：Well qualified internal audit team高素质的内部审计团队Copies of reports sent to audit committee送交审计委员会的报告副本
Copies of report sent to area that was audited – allows for improvementWeaknesses of internal audit dept:发送到已审核区域的报告副本– 需要改进内部审计部门的弱点：Manager reports to CFO经理向首席财务官报告Internal audit help accounting dept when the accounting dept is really busy内部审计帮助会计部门当会计部门真的很忙No reliance on internal audit dept due to lack of independence.