ISA 315 "Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment describes the five components of an entity’s internal control system." Question: Critically explain the relationship between the FIVE components of an entity’s internal control system

ISA 315 "Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment describes the five components of an entity’s internal control system." Question: Critically explain the relationship between the FIVE components of an entity’s internal control system

Accounting Information Systems

11th Edition

ISBN:9781337552127

Author:Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan Hill

Publisher:Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan Hill

Chapter10: The Order Entry/sales (oe/s) Process

Section: Chapter Questions

Problem 15RQ: Describe the impact that entity-level controls (i.e., control environment, pervasive controls, and...

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2) a) ISA 315 Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment describes the five components of an entity’s internal control system.Critically explain the relationship between the FIVE components of an entity’s internal control system.
ISA 315 (Revised): Identifying and Assessing The Risks Of Material Misstatement states that the auditor should obtain an understanding of internal control relevant to the audit. Auditors commonly use three types of documents to obtain and document their understanding of the design of internal control: narratives, flowcharts, and internal control questionnaires. REQUIRED: Describe THREE (3) inherent limitations of internal control system that could limit its effectiveness Explain TWO (2) advantages and ONE (1) limitation in using ‘Internal Control Questionnaire’ to document understanding of the internal control system.
1. Standards requires auditors obtain an understanding of an organization’s control environment. Discuss two techniques that may be used to obtain such understanding. PLease answer this thank you:)
a) ISA 315 Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity andIts Environment describes the five components of an entity’s internal control system. Critically explain the relationship between the FIVE components of an entity’s internal control system.You are an Assistant Audit Manager of Abromovich & Co and are in the process of reviewing the control testing completed on the payroll system of Khelsea Industries Co (Khelsea), as well as preparing the audit programmes for the final audit.Khelsea operate several chemical processing factories across the country, it manufactures 24 hours a day, seven days a week and employees work a standard shift of eight hours and are paid for hours worked at an hourly rate. Factory employees are paid weekly, with approximately 20% being paid by bank transfer and 80% in cash; the different payment methods are due to employee preferences and Khelsea has no plans to change these methods.Factory staff are…
48. COSO has an exposure draft for five risk components. Which of the following has a counterpart to the Internal Control System’s Control Environment? Group of answer choices Risk Information, Communication, and Reporting Monitoring Enterprise Risk Management Performance Risk in Execution None of the choices Risk, Strategy, and Objective Setting
QUESTION 2 (a). ISA 315 Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment requires auditors to obtain an understanding of control activities relevant to the audit. Control activities are the policies and procedures which help ensure that management directives are carried out. Required: Describe FOUR different types of control activities and, for each type, provide an example of control a company may implement. (b) Diamond Medical Company manufactures nose mask and hand sanitizer. Its main customers are retailers who then sell to the general public. The company’s manufacturing is spread across five sites and goods are stored in its nine warehouses located across the country. You are an audit supervisor of Reynolds & Associate and in preparation for the forthcoming audit for the year ending 30 June 2019, you are reviewing the following notes your audit manager has provided you with in relation to the company’s internal…