QUESTION $1$

$28$ marks

Part A

$q,$ is responsible for selling and distributing various types of sunglasses through their online shop.

expanded their operations during the past few years and recently established an internal audit function.

has been appointed as the internal audit manager. It became clear that the concepts of independence and organisational independence are terms that senior management is unfamiliar with.

$$ decided to prepare a presentation on independence and present it at the next management meeting.

REQUIRED

Marks

$1\mathrm{.}1$ Define independence as it pertains to an internal audit function and explain the reporting relationship that should be in place to obtain organisational independence.

$1\mathrm{.}2$ Explain to senior management what independence means for internal auditors.

Part B

During the first board meeting it became clear that the board unsure of the internal audit function's responsibilities regarding assistance to management and the governance processes.

REQUIRED

Marks

$1\mathrm{.}3$ List and describe the four functions of management.

$1\mathrm{.}4$ Provide examples to senior management on how internal audit can assist management.

$1\mathrm{.}5$ Describe the terms governance, risk, and control.

$1\mathrm{.}6$ Describe the responsibilities that the internal audit function is required to perform to improve the governance processes of an organisation by referring to the Institute of Internal Auditors $($IIA$)$ Standards.

$(6)$