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Internal Control Considerations Overview

This document discusses internal control considerations and provides definitions and explanations of key concepts related to internal control. It covers how auditors make use of their understanding of internal control, things to consider in designing and evaluating internal control, objectives and components of an effective internal control system, control activities, inherent limitations of internal control, understanding the entity, sources of information about internal control, documentation requirements, and assessing control risk.

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Shang Bugayong
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220 views2 pages

Internal Control Considerations Overview

This document discusses internal control considerations and provides definitions and explanations of key concepts related to internal control. It covers how auditors make use of their understanding of internal control, things to consider in designing and evaluating internal control, objectives and components of an effective internal control system, control activities, inherent limitations of internal control, understanding the entity, sources of information about internal control, documentation requirements, and assessing control risk.

Uploaded by

Shang Bugayong
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Chapter 6 Internal Control Consideration 7.

I. DEFINITION I. Managements philosophy


1. Internal Control 1.
2. Audit Committee 2.
3. Audit Trail 3.
4. Walk-through test
5. Written narrative J. Good human resource policies and practices
6. Flowchart 1.
7. Internal control questionnaire 2.
8. Design effectiveness 3.
II. ENUMERATION 4.
A. How auditors make use of the understanding of internal 5.
control 6.
1. K. Qualifications of an Audit Committee
2. 1.
3. 2.
B. Audit report includes 3.
1. L. Functions of an Audit Committee
2. 1.
3. 2.
C. Things to consider in designing internal control 3.
1. 4.
2. 5.
D. Control and examples 6.
1. 7.
2. 8.
3. 9.
E. Objectives and examples 10.
1. 11.
2. M. Risk from external factors
3. 1.
F. Applicable component and factors to consider in 2.
exercising judgement 3.
1. 4.
2. N. Risk from internal factors
3. 1.
4. 2.
5. 3.
6. 4.
G. Component of internal control system O. Managements responsibility
1. 1.
2. 2.
3. 3.
4. 4.
5. P. Objectives of control activities
H. Things to consider in evaluating the design of the 1.
entitys internal control environment 2.
1. 3.
2. 4.
3. 5.
4. 6.
5. 7.
6. 8.
9.
Q. Categories of control activities AA. How auditor assess control risk at high level
1. 1.
2. 2.
3. 3.
4. BB. How auditor assess control risk at low level
R. Objectives of establishing methods and records 1.
1. 2.
2. 3.
3. CC. Examples pf evidence
4. 1.
5. 2.
S. Inherent limitations of internal control 3.
1. 4.
2. 5.
3. 6.
4. 7.
5. 8.
6. DD. Audit matter of governance interest
T. Categories of audit trail 1.
1. 2.
2. 3.
3. 4.
4. 5.
U. Aspects of understanding the entity 6.
1. 7.
2. 8.
3.
4.
5.
V. Purpose of walk-through test
1.
2.
W. Sources of obtaining knowledge of IC
1.
2.
3.
4.
5.
X. Level of understanding required depends on
1.
2.
3.
4.
5.
Y. Documentation of documents
1.
2.
3.
Z. Major steps of preliminary assessment of control risk
1.
2.
3.

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