I would expect the internal auditors to carry out the work in the following areas: –
(i) Reviewing accounting systems and internal controls. This would include e.g. considering the adequacy of controls in an area like cash receipts at the supermarket and making suggestions for improvement.
(ii) Examining financial and operating information for management. Here, they would test the accuracy of the information contained in Bei Nafuu‘s financial and management accounts by performing both substantive procedures and tests of control.
(iii) Review of the economy, efficiency and effectiveness of operations and the functioning of non-financial controls. This might cover areas such as staff deployment or training, energy conservation, floor management.
(iv) Review of the implementation of corporate plans, policies and procedures This would involve internal auditors checking that any special company procedures were adhered to, either in the area of financial or administrative controls.
(v) Special investigations. Internal audit could be required by management to carry out any kind of review that is relevant, e.g. research into the possible effects of a new accounting policy or detailed investigation into a suspected fraud. The work of internal audit spans a wide spectrum of activities from tests that are very similar to those performed by the statutory auditor to ‗one-off‘ exercises for internal use by company‘s‘ management.
(vi) Reviewing whether the supermarket is complying with the relevant laws and regulations such as council health standards, labour laws and taxation laws.