Define control risk and tests of control.
What is a control environment?
What are control procedures?
What is the importance of an internal control system to the client?Whose responsibility is it to put in place an internal control system?
Why does the auditor ascertain, record and evaluate the client’s internal control system?
List down in point form an internal control system for the raw materials purchasing system of a large manufacturing firm.
What is a management letter and what function does it serve?
The directors of one of your growing clients have decided to create an internal audit function in their organizational structure.
- List and briefly describe the duties you would expect the internal audit staff to perform.
- List and explain the criteria you would consider before deciding to rely on the work of the internal audit function
- State the extent to which you, as the external auditor can rely on the work of the internal audit function