Please enable JavaScript.
Coggle requires JavaScript to display documents.
Internal Controls - Coggle Diagram
Internal Controls
Control Objectives
Validity
actually occurred and supported by
sufficient documentation &
evidence
Authorisation
authorized according to
general& specific policies of management
Completeness
transactions recorded &
nothing left out
Accuracy
transactions & documents are recorded at correc
t quantity, price & arithmetically
correct
Recording
recorded correctly
Classification
classified correctly (according to nature thereof)
Cut-Off
transactions recorded timeously in
correct financial period
to which they relate
Things the auditor needs to understand about the audit client
F/S balances that may be affected
Flow of transactions(Audit trail)
Documents (Invoices etc)
Audit & Business risks in the cycle
The Controls in the cycle
Design - Risk assessment
Implementation - Test of Control
Effectiveness - Test
Substantive procedures
What is internal control? (ISA 315)
Process >> designed, implemented & maintained
By those charged with governance(BOD), management (Executive) & personnel
To provide reasonable assurance
About the achievement of entity's objective about the reliability of
Financial reporting
Effective & efficient operations
Compliance with the applicable laws & regulations
ISA 315 Responsibility of auditor
Auditor evaluate design of control to consider if control will:
Prevent MM
Detect MM
Correct MM
Auditor should determine whether the controls:
Implemented
Exist
Org. use control in business cycle
ISA 265: Communication of deficiencies in internal Control
auditor communicate To those charged with governance and management
Do not express opinion on the controls