differences between process (internal control) components and assertions

Differences between process (internal control) components and assertions

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I want to take a moment to review the differences between process (internal control) components and assertions. PROCESS (INTERNAL CONTROL) COMPONENTS All companies have objectives that they must achieve such as ensuring the reliability of their financial reporting, maintaining effective and efficient operations, and complying with applicable rules and regulations. To accomplish these objectives the companies establish various procedures and processes. Internal control is an established process designed to provide reasonable assurance concerning the company’s ability to achieve their objectives. The internal control process consists of five interrelated components listed below. These components are typically referred to as “process” or “internal control” components. 1) monitoring 2) control environment 3) risk assessment 4) control activities 5) information and communication These components are evaluated at the beginning of an audit because they can directly
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This note was uploaded on 04/07/2011 for the course ACCT 490 taught by Professor Richard during the Spring '11 term at DeVry Long Beach.

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Differences between process (internal control) components and assertions

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