Discussion audit question 1. What are preliminary surveys and how are they useful in the internal audit preparation process? 2. ‘Inherent risk’ can be defined as the combination of internal and external risk factors in their pure, uncontrolled state, or gross risk that exists assuming there are no internal control activities in place. ‘Residual risk’, on the other hand, can be defined as the portion of inherent risk that remains after management executes its risk responses. With the above definitions in mind, discuss why internal auditors typically focus on inherent risk while management tends to focus on residual risk. 3. What are the elements/components of a well written audit report finding? Discuss any two of them.

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1 Preliminary audit survey is the process of conducting initial investigation in particular area to be audited as defined in the scope of the survey The major focus of preliminary audit is to obtain i... View the full answer