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AUDIT & INTERNAL CONTROL - Coggle Diagram
AUDIT & INTERNAL CONTROL
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Internal Control
Meaning:
:<3: Control attempt to ensure that risks, those factors which stop the achievement of a company objectives are minimzed
:<3: Internal Control System comprises the whole network of systems established in an organisation to provide reasonable assurance objectives be achieved
:<3: Internal Management Control refers to procedures and policies in place to ensure that company objectives are achieved.
Objectives:
:warning: Safeguard of assets of the business
:warning: Prevention and detection of fraud and error
:warning: Accuracy and completeness of accounting records
:warning: Timely preparation of financial information
Limitation of Internal Control Systems
:black_flag: Good internal control system cannot turn a poor manager into a good one
:black_flag: Internal control systems can be by passed by collusion and mgt override
:black_flag: Controls are only designed to cope with routine transactions and events
Auditor Independence
- ensure activity is carried out
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