Please help with the following problem.
What are management's and auditors' respective responsibilities regarding internal control?© BrainMass Inc. brainmass.com March 4, 2021, 8:37 pm ad1c9bdddf
Problem: What are management's and auditors' respective responsibilities regarding internal control?
As defined in the audit textbook written by Rittenberg and Schwieger, internal control is: "a process, effected by the entity's board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories: (1) reliability ...
The solution gives a textbook definition of a system of internal control including the four objectives of any such system. The responsibilities of management are clearly defined with regard to internal control systems. The auditors' position is explained including consequences of failures in the sytem of internal control, but also the effects in substantive testing with a functioning system of internal controls. The explanation is given in 238 words.