L7pp_Internal%20control%20(student)

L7pp_Internal%20control%20(student) - INTERNAL CONTROL 1...

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INTERNAL CONTROL 1
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WHY? The auditors should obtain an understanding of the accounting and internal control systems sufficient to plan the audit and develop an audit approach. The auditors should use professional judgment to assess and to design audit procedures to ensure it is reduced to an level. 2
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DEFINITIONS OF INTERNAL CONTROLS I/C are and established by the management to ensure the business is carried on in an orderly and efficient manner and management objectives can be achieved. Good I/C system can ensure : Adherence to management s policies; of assets; Prevention and of fraud and errors; Completeness and accuracy of records; and Provision of timely and reliable financial information. 3
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TYPES OF INTERNAL CONTROLS 1. Organisational controls: a clear line of authority and responsibility. 2. of duties: separation of responsibilities. 3. Physical controls: control access. 4. and approval 5. Arithmetic and accounting: arithmetical accuracy checked. 6. Personnel: employ persons of integrity and competence. 7. Supervision: supervisory procedures. 8. Management: controls executed by management, e.g. internal audit. 4
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PLANNING AN AUDIT STRATEGY The auditor can choose from two audit strategies: no-reliance or substantive strategy reliance strategy 5
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L7pp_Internal%20control%20(student) - INTERNAL CONTROL 1...

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