Internal controls are defined as the policies, practices, procedures, and processes that management implements in order to ensure the accuracy and fairness of the information recorded in company financial statements (AICPA, 2011). The audit process has been designed to provide reasonable assurance for the effectiveness of financial reporting as well as complying with the laws and regulations provided. The audit process and the internal controls have a direct relationship for many reasons. There are four stages within the audit process, which include the planning stage, fieldwork stage, reporting stage and lastly, the follow up stage. The evaluation of the internal controls is conducted during the planning stage of the audit process. In the fieldwork stage is when the internal controls are determined to be effective or not. This stage is crucial because the auditors can find the problems with the internal controls and address solutions. Management then receives the evaluations of the internal controls once
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