In almost all accounting courses there has been a reference to internal controls and their importance. In the auditing course, a more detailed discussion on internal controls, control risks and situations that have occurred because of weakness in internal controls? Why has so much time been spent on this subject?
Please provide a full response for a full understanding of the topic
From the perspective of an audit textbook, the internal controls of a company are often explained mostly in terms of accounting procedures. The types of internal control evaluation questions attempt to determine that there is a set of procedures in place for accounting and that the procedures are being followed. The presumption is that if the system design is adequate and if it is being used properly, then the risk of misstatement in the financial statements will be lower. That is the micro view of internal ...
The 318 word, cited solution explains a number of reasons why good internal control systems have become so important to the mission, value and goals of an organization.