Recruitment Exam for DISTRICT INTERNAL AUDITORS (MARKING SCHMES – both Versions )

Share this to colleagues

Recruitment Exam for DISTRICT INTERNAL AUDITORS (MARKING SCHMES – both Versions )

English VERSION 

  1. (a) Define and explain the ‘three Es’ of a value for money audit

In performing a value for money audit, there are three areas which an auditor will commonly focus on being economy efficiency and effectiveness, and these are known as the ‘three Es’.

Economy – Keeping the cost of resources used to a minimum.

Efficiency – The relationship between the output from goods and services and the resources used to produce them.

Effectiveness – How well the organization’s objectives have been achieved.

(b) ISA 230 Audit Documentation requires auditors to prepare audit documentation for an audit of financial statements on a timely basis. Describe FOUR benefits of documenting audit work.

  • Provides evidence of the auditor’s basis for a conclusion about the achievement of the overall objective of the audit.
  • Provides evidence that the audit was planned and performed in accordance with ISAs and applicable legal and regulatory requirements.
  • Assists the engagement team to plan and perform the audit.
  • Assists members of the engagement team responsible for supervision to direct, supervise and review the audit work.
  • Enables the engagement team to be accountable for its work.
  • Retains a record of matters of continuing significance to future audits.

(c) ISA 530 Audit Sampling applies when the auditor has decided to use sampling to obtain sufficient and appropriate audit evidence. Define what is meant by ‘audit sampling’ and explain the need for this.

Audit sampling is the application of audit procedures to less than 100% of items within a population of audit relevance, such that all sampling units have a chance of selection in order to provide the auditor with a reasonable basis on which to draw conclusions about the entire population.


Audit sampling can be applied using either a statistical or a non-statistical approach. It involves testing a smaller number of items and using the results to draw a conclusion about the whole balance or class of transactions.

It is necessary for auditors to sample as it is impossible to select all items for testing as this would take the audit team too long and it would cost too much.

In addition, auditors do not provide 100% assurance in their audit report about the financial statements, they only provide reasonable assurance and hence it is not necessary to test every item within a population.

(15 marks)

  1. Define and explain the following concepts:(10 marks)
  2. Test of control: Tests of control evaluate the operating effectiveness of controls in preventing, or detecting and correcting, material misstatements at the assertion level.
  3. Engagement letter: An engagement letter defines the legal relationship (or engagement) between a professional firm and its client. This letter states the terms and conditions of the engagement, principally addressing the scope of the engagement and the terms of compensation for the firm.
  4. Audit risk: Audit risk is the risk that the auditor expresses an inappropriate audit opinion when the financial statements are materially misstated. Audit risk is a function of two main components being the risks of material misstatement and detection risk. Risk of material misstatement is made up of two components, inherent risk and control risk.
  5. Public property: movable and immovable assets of a public entity;
  6. Budget Appropriation: provision in the State Finance Law adopted by the Chamber of Deputies approving the maximum amount that a public entity may be allocated in making commitments and payments for specific purposes during a twelve (12) month period starting on July 1st and ending on June 30 of each year;
  1. The parliamentary Public Accounts Committee (PAC) has recently released its report as a result of a probe in into the alleged misappropriation of public funds, as highlighted in the 2013/2014 Auditor General’s report. The report cites various irregularities discovered in government spending. Your district was cited among government institutions which have ‘’released funds for different activities than planned”.


As the Head of internal audit of the district you have been requested to comment on the report.

  1. Write a short report highlighting the steps that will be undertaken by the district in addressing the issues raised in the report. (15 marks)
  2. Discuss the measures and controls that will be implemented to ensure that funds are only released for their planned activities. (10 marks)
  1. Relevant discussion and format of the report around:
  • Obtaining detailed evidence about the irregularities
  • Identifying and investigating the causes of the irregularities identified
  • Steps taken to strengthen the internal controls to avoid similar irregularities in the future
  • Meetings with concerned staff to discuss about the irregularities, their causes and internal control measures to prevent them
  • Coming up with an action plan with timeline showing how and when the recommendations will be implemented
  • Taking disciplinary actions against staff causing such irregularities


  1. Relevant discuss on budget monitoring
  • Variance analysis
  • Regular financial reporting
  • Allocation of costs to specific departments;
  • Investigating budget overruns;
  • Cash flow forecasts


Note: Any other relevant discussion will earn marks



  1. (a) Définissez et expliquez les ‘’trois E” en rapport avec l’audit de performance

(b) La norme internationale d’audit (ISA 230)- Documentation d’audit exige a l’auditeur de préparer la documentation d’audit des états financiers à temps. Décrivez Quatre avantages de documenter le travail d’audit.

(c) La Norme International d’Audit (ISA 530)- Sondages d’audit est applicable quand l’auditeur décide d’utiliser la méthode d’échantillonnage pour obtenir les éléments probants d’audit suffisants et appropriés. Définissez ‘l’échantillonnage d’audit’ et expliquer son importance.

(15 points)

  1. Définissez et expliquez les concepts suivants:(10 points)
  2. Test des contrôles
  3. Lettre de mission d’audit
  4. Risque d’audit
  5. Patrimoine de l’Etat
  6. Dotation Budgétaire
  1. Le comité du parlement chargé de suivi des comptes publics (PAC) a récemment publié un rapport suite aux allégations de détournement des fonds publics tels que repris dans le rapport de l’Auditeur General de 2013/2014. Le rapport énumère plusieurs irrégularités dans les dépenses des fonds publics. Votre district a été cité parmi les institutions qui ont dépensé des fonds dans les activités différentes de celles qui étaient prévues.


En tant que responsable de l’audit interne du district, on vous demande de commenter sur ce rapport.

  1. Rédiger un rapport reprenant les étapes à suivre par le district pour corriger ces irrégularités énumérées dans le rapport du PAC. (15 points) ;
  • Discuter les mesures et contrôles qui seront mis en place pour s’assurer que les fonds publics sont dépensés aux activités prévues. (10 points)

🌀 WIDECareers Group Ltd  igufasha  gukora Job Application mu buryo bwihuse kandi bwizewe (Online Application Assistance & Career Counceling), saba ubufasha nonaha : 👉🏾 KANDA  HANO

🌀 Reba Imyanya y’Akazi  yose iri kw’Isoko ry’Umurimo mu Rwanda 👉🏾 KANDA  HANO

🌀 Reba Ibizamini  byose by’Akazi  biba byaragiye  bikorwa  kumyanya y’Akazi mu bigo bitandukanye unyuze hano : 👉🏾 KANDA  HANO

🌀 Injira muri Groupe ya WIDECareers ikugezaho Amakuru yizewe y’Imirimo itandukanye n’Akazi kari kw’Isoko Ry’Umurimo mu Rwanda , unyuze hano : 👉🏾 KANDA  HANO

 267 All the time,  2 To day

Share this to colleagues

You May also read these Posts