1.

What are the general competencies and behavioural skills that internal auditors
must possess for effective audit operations.

- The behavioural skills that an internal auditor must possess are strong communication
skills and emotional intelligence. For the general competencies are the critical thinking,
professional scepticism and interpersonal skills. An auditor needs to have strong
communication skills in order to fully present well and clearly convey their thoughts and
ideas during meetings, presentation and interviews with audit clients and executives.
Internal auditors should not be easily swayed by their emotions when they get frustrated
over disorganized financial records or anxious about uncovering a potential fraud, clients
need the steady hand of an auditor who excels at keeping composure and making sure the
bull’s eye an accurate, exhaustive audit remains squarely in sight. Critical thinking is also
required for the auditor to asses the risk in auditing financial statements and lastly the
internal auditor must exhibit professional skepticism to produce high quality audit.

2. What are the relevant standards that provide guidance to internal auditors on what
should be done, how it should be done, and why?

-The relevant standards that will provide guidance to the internal auditors is the PSA 315
Identifying and Assessing the Risks of Material Misstatement through Understanding the
Entity and Its Environment. This will guide the auditors since they need to identify and
assess all the risks in an audit to provide a high level of assurance in an audit. This can be
done by understanding the entity and its environment including the entity control. The
auditor shall perform risk assessment procedures to provide a basis for the identification
and assessment of risks of material misstatement at the financial statement and assertion
levels.

3. What are the passages or rules from the standards that you consider as highly relevant
in operational audits and provide commentaries on your choices (Give at least five)