Professional Documents
Culture Documents
Chapter 10
Contrast management’s
responsibilities for maintaining
and reporting on internal controls
with the auditor’s responsibilities
for understanding, testing, and
reporting on internal controls.
Reasonable assurance
Inherent limitations
Control
Monitoring
activities
Commitment to competence
Organizational structure
Operational Record-keeping
from
responsibility responsibility
Specific authorization
Decide planned
Assess control detection risk
Phase 2 risk Phase 4 and substantive
tests
Narrative
Flowchart
Internal
control
questionnaire
Material
Weakness
Immaterial
©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 10 - 34
Identify Deficiencies and
Weakness
Identify existing controls
Management letters
Adverse