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Sources, ethical issues, solutions: internal control audit

The CEO of your company has asked you to help prepare for the upcoming company audit. One of the items the CEO has asked you to do is suggest a number of sources in which you could get information that would be needed to prepare the description of internal control in the audit working papers.

Prepare a memo that you will present to the CEO in which you do the following:
Suggest the sources from which you can obtain information that would be needed to prepare the description of internal control in the audit working papers.
Explain what potential ethical and legal issues could be presented if these sources are not found.
Develop solutions for those issues.

** I just want some examples of the sources, ethical and legal issues, and solutions, and some direction of references please.

Solution Preview

Internal controls are the designed process and procedures both at the entity-wide and the transaction level to safeguard assets and accounting transaction data, increase the changes that any errors are found and fixed quickly and that all activities are authorized and lawful. So, to describe this system, the auditor would do many things such as:

1. Ask the client ("inquiry") , usually through a series of extensive questionnaires
2. Read the corporate governance and code of ethics documentation (entity-wide tone at the top and entity-wide procedures)
3. Review ...

Solution Summary

Your discussion is 309 words and three references and gives six sources of information and several examples of ethical and legal issues. A solution is mentioned.

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