You are the auditor of Bei Nafuu Supermarkets Limited across the country. The management has informed you that they intend to set up an internal audit function. Required: Explain how the quality of the internal audit department of Bei Nafuu Supermarkets Limited can be assessed

The quality of the internal audit department can be assessed by considering the following:

•  By reviewing internal audit reports to see whether management acts on the recommendations by internal audit;
•  By ascertaining whether the department is staffed by competent people with the required technical training;
•  By drawing from prior year‘s experience on the level of reliance placed on internal auditors work.
•  Whether internal audit work is properly planned and reviewed.
•  The auditor should also evaluate the scope of the function and the extent of work carried out by internal audit.