to the entity being audited. Internal Control is a process, affected 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: Compliance with applica
Question 5
The control environment includes the governance and management function of an organisation. It focuses largely on the
attitude, awareness and actions of those responsible for designing, implementing and monitoring internal controls. One of
the main requirements in planning an audit is to study and evaluate the existing internal controls so as to define the tests to
be applied to the entity being audited. Internal Control is a process, affected 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:
Compliance with applicable laws and regulations
Effectiveness and Efficiency of operations
Reliability of financial reporting
You are required to discuss the components of internal controls that are integrated with managements processes.
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