Reference no: EM132698106

Q1. Disaster Recovery Planning Controversy:

The relevance of a disaster recovery plan (DRP) to a financial statement audit is a matter of debate. Some argue that the existence of a DRP is irrelevant to the audit. Others argue that is an important control that needs to be considered in the assessment of internal control.

A. Provide a logical argument why a DRP should not be considered in the audit.

B. Why a DRP is an important control and should be reviewed the conduct of a financial audit

Q2. An organisation's internal audit department is usually considered to be an effective control mechanism for evaluating the organization's internal audit function report directly to the board of directors' audit committee. Comment on the effectiveness of this organizational structure.