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nature of internal audit work (the COSO Framewok (the control environment,…
nature of internal audit work
gorvernance-risk -control
professional guidance
the importance of internal control
what is internal control
:is either a process or action taken by management for implementing internal control,but other parties may also be involved.Controls are implemented to minimize risk thus ensuring the objectives of the organisation are met
the objectives of internal control
operational objectives
:reliability and integrity of financial and operational information,effectiveness and effeciency of operations,safeguarding of assets
reporting objectives
:reliability,timeliness,transparency of internal and external reporting,financial and non-finacial reporti
compliance objectives
:compliance with laws,regulations and contracts
the COSO Framewok
the control environment
the philosophy and style of senior management
:planning,organising,directing and controlling
the organisational structure
(hierarchy)
methods used to communicate
human resource management
risk assessment
threatens the achievement of objectives. it is the management responsibility to identiy,analyse,measure and control risks. they even have a choice to either address or accept them
control activities
preventive,corrective and detective controls
types of internal controls:
segregation of duties,proper authorisation of transactions and activities,safeguarding of assets and information,independent checks
information and communicating
**advantages and limitations of internal control
advantages:
achieve its goals for profitability and outputs,prevent resource losses,promote reliable financial reporting,ensure compliance with legislations and regulations
limitations:
ensure an organisations success,ensure reliability of financial reporting and complianc with legislations and regulations