Learning Objectives LO5 Illustrate how business risk analysis is used to assess the risk of material misstatement at the financial statement level and.

Slides:

Advertisements

Similar presentations

Internal Control Integrated Framework

Advertisements

OPERATING EFFECTIVELY AT WESD. What is Internal Control? A process designed to provide reasonable assurance the organizations objectives are achieved.

Internal Control and Control Risk

Auditing Concepts.

Internal Control.

The Islamic University of Gaza

Chapter 7 Control and AIS Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-1.

INTERNAL CONTROL. INTERNAL CONTROL DEFINED  INTERNAL CONTROL IS A PROCESS - EFFECTED BY AN ENTITY'S BOARD OF DIRECTORS, MANAGEMENT, AND OTHER PERSONNEL.

Standar Pekerjaan Lapangan: Pemahaman Memadai atas Pengendalian Intern Pertemuan 5.

6-1 McGraw-Hill/Irwin ©2002 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 6 Internal Control Evaluation: Assessing Control Risk.

IDENTIFYING RISKS AND CONTROLS IN BUSINESS PROCESS

Internal Control. COSO’s Framework Committee of Sponsoring Organizations 1992 issued a white paper on internal control Since this time, this framework.

Internal Control in a Financial Statement Audit

Internal Control. COSO’s Framework Committee of Sponsoring Organizations 1992 issued a white paper on internal control Since this time, this framework.

Section 404 Audits of Internal Control and Control Risk

Sarbanes-Oxley Project Summary of COSO Framework Presented by Larry Dillehay & Scott Reitan Parkfield Group LLC.

Learning Objectives LO1 Distinguish between management and auditor’s responsibilities regarding an auditee organization’s internal controls. LO2 Explain.

INTERNAL CONTROL OVER FINANCIAL REPORTING

Information Technology Audit

Chapter 10 Internal control and Control Risk.

Control and Accounting Information Systems

Chapter 07 Internal Control McGraw-Hill/IrwinCopyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved.

Introduction to Internal Control Systems

INTERNAL CONTROL OVER FINANCIAL REPORTING

Internal controls. Session objectives Define Internal Controls To understand components of Internal Controls, control environment and types of controls.

Chapter 5 Internal Control over Financial Reporting

Considering Internal Control

Monitoring Internal Control Systems Johann Rieser Senior Auditor, Ministry of Finance, Vienna.

Internal Control in a Financial Statement Audit

BusinessAllstars.com 1 BusinessAllstars.com Presents Copyright © 2004 by Gainbridge Associates All right reserved This material may not be used or reproduced.

NO FRAUD LEFT BEHIND The Effect of New Risk Assessment Auditing Standards on Schools Runyon Kersteen Ouellette.

Internal Control in a Financial Statement Audit

9 - 1 ©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Internal Control and Control Risk Chapter 9.

©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley Internal Control and Control Risk Chapter 10.

Evaluation of Internal Control System

Richard F. Chambers, CIA, CGAP Vice President, IIA Learning Center The Institute of Internal Auditors.

Evaluation of Internal Control System. Learning Objective 1 Contrast management’s need for internal control with the auditor’s need to consider internal.

The Audit as a Management Tool Vermont State Auditor’s Office – April 2009.

[Hayes, Dassen, Schilder and Wallage, Principles of Auditing An Introduction to ISAs, edition 2.1] © Pearson Education Limited 2007 Slide 7.1 Internal.

CHAPTER 5 INTERNAL CONTROL OVER FINANCIAL REPORTING.

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 6-1 Chapter 6 CHAPTER 6 INTERNAL CONTROL IN A FINANCIAL STATEMENT AUDIT.

Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 6-1 Chapter Six Internal Control in a Financial Statement Audit.

Chapter 9: Introduction to Internal Control Systems

Auditing Internal Control Studies & Risk Assessment Chapter 9 Internal Control Studies & Risk Assessment Chapter 9.

A Guide for Management. Overview Benefits of entity-level controls Nature of entity-level controls Types of entity-level controls, control objectives,

S5: Internal controls. What is Internal Control Internal control is a process Internal control is a process Internal control is effected by people Internal.

Modern Auditing: Assurance Services and the Integrity of Financial Reporting, 8 th Edition Modern Auditing: Assurance Services and the Integrity of Financial.

Internal Control Chapter 7. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 7-2 Summary of Internal Control Definition.

©2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/Elder/Beasley Section 404 Audits of Internal Control and Control Risk Chapter.

Copyright © 2007 Pearson Education Canada 9-1 Chapter 9: Internal Controls and Control Risk.

Chapter 5 Evaluating the Integrity and Effectiveness of the Client’s Control Systems.

Internal Controls For Municipalities Vermont State Auditor’s Office – August 2008.

©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder Section 404 Audits of Internal Control and Control Risk Chapter 10.

©©2012 Pearson Education, Auditing 14/e, Arens/Elder/Beasley Considering Internal Control Chapter 10.

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. Chapter

Governance, risk and ethics. 2 Section A: Governance and responsibility Section B: Internal control and review Section C: Identifying and assessing risk.

McGraw-Hill/Irwin © The McGraw-Hill Companies 2010 Internal Control in a Financial Statement Audit Chapter Six.

Internal Control. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. 7-2 Summary of Internal Control Definition A process...designed.

Chapter 6 Internal Control in a Financial Statement Audit McGraw-Hill/IrwinCopyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

©2005 Prentice Hall Business Publishing, Auditing and Assurance Services 10/e, Arens/Elder/Beasley Internal Control and Control Risk Chapter 10.

Auditors’ Dilemma – reporting requirements on Internal Financial Controls under the Companies Act 2013 and Clause 49 of the Listing agreement V. Venkataramanan.

Internal Control Chapter 7. McGraw-Hill/Irwin © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 7-2 Summary of Internal Control Definition.

8 INTERNAL CONTROL. Definition Duty  mgt (CEO)  Board  Internal auditor  Employee  External person.

Section 404 Audits of Internal Control and Control Risk

Modern Auditing: Assurance Services and the Integrity of Financial Reporting, 8th Edition William C. Boynton California Polytechnic State University at.

Auditing Concepts.

Internal control objectives

Unit 11 October 22, 2017.

INTERNAL CONTROLS AND THE ASSESSMENT OF CONTROL RISK

Internal Control Internal control is the process designed and affected by owners, management, and other personnel. It is implemented to address business.

Presentation transcript:

Learning Objectives LO5 Illustrate how business risk analysis is used to assess the risk of material misstatement at the financial statement level and at the assertion level. LO6 Describe the five components of the internal control framework: the control environment, management’s risk assessment process, information systems and communication, control activities, and monitoring. LO7 Explain how the auditor’s understanding of an organization’s internal control helps the auditor to assess and respond to the risk that its financial statements are misstated. 1

Internal Control Components Internal control is defined as the process designed, implemented, and maintained by management to provide reasonable assurance about:  the reliability of financial reporting,  effectiveness and efficiency of operations, and  compliance with applicable laws and regulations. LO6 2

Internal Control Components Internal control consists of the following: a. the control environment, b. the entity’s risk assessment process, c. the information system and business processes relevant to financial reporting and communication, d. control activities, and e. the monitoring of controls. LO6 3

Control Environment Elements of control environment:  management philosophy and operating style,  organizational structure,  operation of the board of directors, particularly the audit committee,  methods of assigning authority and responsibility,  management monitoring methods,  internal audit,  personnel policies and practices,  external influences, and  computerized systems (preventive controls). LO6 4

Risk Assessment Process The risk assessment process is how management identifies risks related to misstatements in the financial statements.  Management will also evaluate the significance and likelihood of those risks, and decide how to manage those risks efficiently and effectively. LO6 5

Information System, Business Processes and Communication An information system has procedures to:  identify and record all valid transactions,  describe transactions in a manner that permits proper classification,  measure the value of transactions,  determine the time period in which transactions should be reported, and  present the transactions properly in the financial statements. LO6 6

Control Activities Controls are policies and procedures that ensure the achievement of the entity’s goals, including financial reporting goals.  Controls can be categorized as either general controls or as application controls.  General controls relevant to the audit include performance reviews.  Application controls include checks on accuracy, completeness, and authorization of transaction processing. LO6 7

Monitoring of Controls Management’s monitoring of controls includes considering whether they are operating as intended.  Monitoring may include reviews of reconciliations, internal audit evaluations, and legal department evaluations of compliance.  Controls are modified as required to accommodate changes in business conditions. LO6 8