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Internal Control Questionnaire

Please help me answer these

a. What is the general nature of the questions included in internal control questionnaires?
b. Identify several advantages of using questionnaires to document the auditor's understanding of internal control.

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a. What is the general nature of the questions included in internal control questionnaires?

According to Gupta, an internal control questionnaire lists the different questions that an auditor asks so that he can verify the existence of an internal control system and the degree of its effectiveness. The questionnaire is pre-designed and questions are composed to ensure that all aspects of the internal control system are included. It can also serve as a record to show that an auditor has evaluated the internal control system.

Since organizations differ in nature, most auditing firms develop a standard internal control questionnaire but slightly modifies it to fit the company using it. He observes tests and reviews an organization's internal control systems and performs some changes on the specific questionnaire according to the information or confirmation of certain observations. Some questions need to be answered by executives of the organization. The questions are logical and comprehensive and usually answerable by Yes/No/Not applicable but there is a provision for an amplification of answers. An important feature of the questions is that ...

Solution Summary

The solution discusses the general nature of the questions of the internal control questionnaire. References are included.

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