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Test Deck 1
Testing Braineos.
4 cards·by bueschec
What's management's responsibility with internal control?
Maintain controls that provide reasonable assurance that adequate control exists over
entity's assets and records.
What are 2 things an internal control system should do?
1. Ensure that assets and records are safeguarded 2. Generate reliable info for decision
making
What does the auditor use the understanding of internal controls for?
1. Identify types of potential misstatements 2. Pinpoint factors that affect risk of
material misstatement 3. Design tests of controls and s
How do auditors gain an understanding of internal control?
1. Read prior year control procedure documentation. 2. Talk with client about changes
(required by PCAOB) 3. Interview personnel on how they