Tutorial 4 Internal Auditing

1732 Words7 Pages
Tutorial 4 Review questions: 1- What does the term internal control mean? The Committee of Sponsoring Organizations of the Treadway Commission (COSO) defines internal control as: * “ a process, affected by an entity’s board of directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories” * Effectiveness and efficiency of operations * Reliability of financial reporting * Compliance with applicable laws and regulations 2- What are the five components of an internal control framework? i. CONTROL ENVIRONMENT * Influencing the control consciousness in organization * The foundation of all…show more content…
* Management also responsible to create the policies needed to ensure the services are provided effectively and assets safeguarded. * Management is responsible for establishing and maintaining internal control to achieve the objectives of effective and efficient operations, reliable financial reporting, and compliance with applicable laws and regulations. * Management shall consistently apply the internal control standards to meet each of the internal control objectives and to assess internal control effectiveness. The board of directors * The board of directors oversight body guides and directs management in the development and performance of internal control. * Review the effectiveness of the internal control throughout the financial year and up to the date on which the financial statements were signed. * The Board has appointed an Audit Committee from within its ranks to represent the Board in matters concerning the monitoring of the company’s financial reporting and, in relation to the financial reporting, to monitor the efficiency of the company’s internal control, internal audit and risk management. Internal auditor * Evaluate the effectiveness of internal control and recommend improvements. * Examined the compliance with laws, regulations and guidelines. External auditor * Provide another independence view on the reliability of the entity’s external reporting. Other external parties

More about Tutorial 4 Internal Auditing

Open Document