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at Reader DC Management Assig X file:///C:/Usersikomo/OneDrive/Documents/Risk%20Management 20Assignment%201.pdf Contents o + Fit to page Page view A Read aloud Chapter 3 :- Question Two (25 Marks) The Internal audit department of V. Gama College has recently completed a review of the systems relating to portable equipment. The review focussed on compliance tests on the controls over the custody of these assets. The college's accounts department maintains a centralised asset register. New assets are recorded on the register as part of the system for the recording and payment of purchases. The asset register identifies the department responsible for the care and maintenance of each asset. Disposals are notified to accounts using a form that has to be signed by the relevant head of department. Departments are required to conduct an annual physical inspection of their portable assets. A team of internal auditors led by Mr X Shangase, extracted a sample of entries from the asset register for each of the college's departments and physically inspected each BE der DC gement Assig X file:///C:/Usersikomo/OneDrive/Documents/Risk%20Management%20Assignment%201.pdf O - + to page Page View A Read aloud Add notes A team of Internal auditors led by Mr X Shangase, extracted a sample of entries from the asset register for each of the college's departments and physically inspected each of the assets in the sample. This inspection proved satisfactory, with just one exception. When the audit team visited the music department it asked to see a number of items including a clarinet. The music department's technician became slightly evasive and stated that the clarinet could not be inspected because it had been signed out by a member of teaching staff. The audit team asked to see evidence of this and was concerned to discover that the signature was dated more than two years previously. The technician said that the signature belonged to a former member of staff who had left the college six months ago The internal audit department submitted a report concerning this incident to the College Principal, Miss M Shange. Four days later, the Head of the Music Department Miss P Rangasamy telephoned the internal audit department to report that the clarinet had been in the department at the time of the audit, but that the technician had not been aware of its location. The former staff member who had signed the clarinet out had returned the instrument soon afterwards and had simply forgotten to record the ch e 3. * 2 F12 Salk PAS Syste Pause Break west % 5 6 7 er DC ement Assix Add notes Ofe/C/Userskomo/OneDrive/Documentid%20Management 20Assignment%201.pdf hits it to page Pageview A Read soud Instrument's safe return. The Head of the Music Department insisted that a member of the audit staff Inspect the clarinet in order to confirm its presence, which was done. The Head of Internal Audit was not satisfied by the response. He was concerned that the Head of the Music Department could have been covering up a theft committed by a former colleague by requesting the return of the clarinet and by fabricating an explanation that the instrument had been mislaid as at the time of the audit. The College Principal acknowledged these concerns, but instructed the Head of Internal e A * B PS so Pa Salk Dee % 5 6 Backspace 8 0 crobat Reader DC isk Management Assig X O file/C/Userskomo/OneDrive Documents/Risk%20Management%20Assignment%201.pdf Contents Reto page Montes + Page View A Read aloud Audit to take no further action Required: (a) Discuss the implications for the internal audit department of the events up to and Including the discovery that the clarinet had been signed out by a former member of staff. (10 marks) (b) Discuss the implications of the responses by the Head of the Music Department and the College Principal (1) for the governance at the college. (10 marks) (ii) for the actions the Head of Internal Audit will take in response to these.(5 marks) search e 111 P Salt Break at Reader DC Management Assig X file:///C:/Usersikomo/OneDrive/Documents/Risk%20Management 20Assignment%201.pdf Contents o + Fit to page Page view A Read aloud Chapter 3 :- Question Two (25 Marks) The Internal audit department of V. Gama College has recently completed a review of the systems relating to portable equipment. The review focussed on compliance tests on the controls over the custody of these assets. The college's accounts department maintains a centralised asset register. New assets are recorded on the register as part of the system for the recording and payment of purchases. The asset register identifies the department responsible for the care and maintenance of each asset. Disposals are notified to accounts using a form that has to be signed by the relevant head of department. Departments are required to conduct an annual physical inspection of their portable assets. A team of internal auditors led by Mr X Shangase, extracted a sample of entries from the asset register for each of the college's departments and physically inspected each BE der DC gement Assig X file:///C:/Usersikomo/OneDrive/Documents/Risk%20Management%20Assignment%201.pdf O - + to page Page View A Read aloud Add notes A team of Internal auditors led by Mr X Shangase, extracted a sample of entries from the asset register for each of the college's departments and physically inspected each of the assets in the sample. This inspection proved satisfactory, with just one exception. When the audit team visited the music department it asked to see a number of items including a clarinet. The music department's technician became slightly evasive and stated that the clarinet could not be inspected because it had been signed out by a member of teaching staff. The audit team asked to see evidence of this and was concerned to discover that the signature was dated more than two years previously. The technician said that the signature belonged to a former member of staff who had left the college six months ago The internal audit department submitted a report concerning this incident to the College Principal, Miss M Shange. Four days later, the Head of the Music Department Miss P Rangasamy telephoned the internal audit department to report that the clarinet had been in the department at the time of the audit, but that the technician had not been aware of its location. The former staff member who had signed the clarinet out had returned the instrument soon afterwards and had simply forgotten to record the ch e 3. * 2 F12 Salk PAS Syste Pause Break west % 5 6 7 er DC ement Assix Add notes Ofe/C/Userskomo/OneDrive/Documentid%20Management 20Assignment%201.pdf hits it to page Pageview A Read soud Instrument's safe return. The Head of the Music Department insisted that a member of the audit staff Inspect the clarinet in order to confirm its presence, which was done. The Head of Internal Audit was not satisfied by the response. He was concerned that the Head of the Music Department could have been covering up a theft committed by a former colleague by requesting the return of the clarinet and by fabricating an explanation that the instrument had been mislaid as at the time of the audit. The College Principal acknowledged these concerns, but instructed the Head of Internal e A * B PS so Pa Salk Dee % 5 6 Backspace 8 0 crobat Reader DC isk Management Assig X O file/C/Userskomo/OneDrive Documents/Risk%20Management%20Assignment%201.pdf Contents Reto page Montes + Page View A Read aloud Audit to take no further action Required: (a) Discuss the implications for the internal audit department of the events up to and Including the discovery that the clarinet had been signed out by a former member of staff. (10 marks) (b) Discuss the implications of the responses by the Head of the Music Department and the College Principal (1) for the governance at the college. (10 marks) (ii) for the actions the Head of Internal Audit will take in response to these.(5 marks) search e 111 P Salt Break

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