tailieunhanh - FINANCIAL SYSTEMS AND AUDITING

To understand an entity’s internal control, the auditor will evaluate the design and implementation of a control. The auditor's primary consideration is whether, and how, a specific control prevents, or detects and corrects, material misstatements in classes of transactions, account balances or disclosures. The heaviest emphasis by auditors is on controls over classes of transactions rather than account balances or disclosures | Slide FINANCIAL SYSTEMS AND AUDITING Internal Control and Control Risk MANAGEMENT CONTROL AND CORPORATE GOVERNANCE Principles of Auditing An Introduction to International Standards on Auditing - Ch. 7 Rick Stephan Hayes Roger Dassen Arnold Schilder Philip Wallage Hayes Dassen Schilder and Wallage Principles of Auditing An Introduction to ISAs edition Pearson Education Limited 2007 Slide Internal Control is A process effected 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 and safeguarding of assets against unauthorized acquisition use or disposition. Hayes Dassen Schilder and Wi rinciples of Auditing An Introduction to ISAs edition Pearson Education Limited 2007 Slide Internal control is geared to the achievement of objectives in one or more separate overlapping categories 1 effective operations relating to effective and efficient use of the entity s resources 2 financial reporting relating to preparation of reliable published financial statements 3 compliance relating to the entity s compliance with applicable laws and regulations 4 safeguarding of assets Ficiyes Udbbeii OGiniuei CIIIU vvciiiciye G p fiUf Huuiiuiy zv IIILIUUUUIIUII LU ozAi euinuii reciisuii cuuuciiion Limited .