Internal Control Components: Definition and Application

What internal controls components are common among long-term assets and liabilities, and equity accounts? What components are unique to each? How can an auditor assess these controls?

What are the key management assertions related to long-term assets and liabilities? What are the most important assertions related to long-term assets and liabilities? How will auditors test these assertions?

What are the key management assertions related to equity? What are the most important assertions related equity? How will auditors test these assertions?

What are the key management assertions related to cash? What are the most important assertions related cash? How will auditors test these assertions?

Solution Summary

The solution lists the general components of internal control followed by a short paragraph of explanations for each of the five components. Next the various components are discussed as they relate to the specific assertions named in the problem. 486 words.