internal control
Not what you're looking for?
In meeting the second generally accepted auditing standard of fieldwork, the auditor is required to obtain sufficient understanding of each component of the entity's internal controls to plan the audit of the entity's financial statements.
Purchase this Solution
Solution Summary
Internal control is discussed very comprehensively in this explanation.
Solution Preview
CONTROL ENVIRONMENT:
The auditor requires the knowledge of what the management's philosophy and operating style should be, he should also know what the organizational and authorization polices should be, knowledge of what is acceptable technology and human resource policies and the standard polices of the audit committee.
The auditor should assess the management's risk aversion, the manner in which payments are authorized, the security system of the information system and the integrity of the human resource polices and if there is a large number of independent non-executive members on the audit committee. Usually, the control risks observed at this stage need to be documented. For instance if the auditor finds that payments are not ...
Education
- BSc , University of Calcutta
- MBA, Eastern Institute for Integrated Learning in Management
Recent Feedback
- "I read your comments, and thank you for this feedback. Do I need to find other studies that applied this methodology Ive used? That's where I'm stuck at."
- "Thank you kindly sir. "
- "Excellent and well explained. --Thank you kindly. "
- "Awesome notes. I appreciate you."
- "I have the follow-up project and I will assign that to you very soon. "
Purchase this Solution
Free BrainMass Quizzes
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
Basics of corporate finance
These questions will test you on your knowledge of finance.
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.