Checklist for Evaluating Internal Controls ACC/544 April 29‚ 2013 Christine Errico Checklist for Evaluating Internal Controls Internal controls are methods a company implements to safeguard and protect the company in its day-to-day operations as well as its financial information. To ensure these controls are effective and performing properly a company must evaluate these controls. In performing this evaluation a company should use the three phases of the control evaluation. These phases
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Running Head: EVALUATING INTERNAL CONTROLS Evaluating Internal Controls Internal Control Systems – ACC/544 Stephanie Booth Robert Cornett University of Phoenix September 29‚ 2014 Evaluating Internal Controls An organization’s internal controls are comprised of five components‚ which include: the control environment‚ risk assessment‚ control activities‚ monitoring‚ and information and communication. The five
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Chapter 1—Auditing and Internal Control TRUE/FALSE 1. Corporate management (including the CEO) must certify monthly and annually their organization’s internal controls over financial reporting. ANS: F PTS: 1 2. Both the SEC and the PCAOB require management to use the COBIT framework for assessing internal control adequacy. ANS: F PTS: 1 3. Both the SEC and the PCAOB require management to use the COSO framework for assessing internal control adequacy. ANS: F PTS: 1 4. A qualified opinion
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Internal Control Evaluation Every business should take the steps necessary to ensure that its internal controls are functioning effectively and efficiently. It is important to have accountability at every level of a business. Creating a checklist to evaluate internal controls will support the business in this effort. According to Louwers‚ Ramsay‚ Sinason and Stawser (2007)‚ an internal control questionnaire aide an auditor in gathering evidence about the control environment and accounting and
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Case Study Project What is the purpose of auditing? Describe the relationship between internal controls and the audit process. Answer The purpose of an audit is to provide financial statement users with an opinion by the auditor on whether the financial statements are presented fairly‚ in all material respects‚ in accordance with the applicable financial reporting framework. An audit also enhances the degree of confidence of intended users in the financial statements. Financial audits
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Executive Summary The following report relates to the internal controls of Woolworths‚ and will look to describe and analyse them with the use of flow charts. The report will then move onto give details of an audit program that has been designed to test the internal controls of Woolworth’s accounts payable. Moreover‚ possible ways of how controls could be overridden as well as how the overall system could be realistically improved will also be discussed within the report. Business Introduction
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EXECUTIVE SUMMARY This paper will evaluates the role of information technology and how it affects internal audit process in banking industry. The study will also stresses on how IT affects internal control (control environment‚ risk assessment‚ control activities‚ information and communication and monitoring) and provides guidelines and best practices in evaluating techniques available to effectively perform auditing tasks internally. It will addresses how technology‚ Information system (IS) and
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Obtaining an understanding of internal control allows auditor’s to identify the types of material misstatements that could occur in the financial statements‚ consider the factors that affect the risk of material misstatements‚ and design substantive tests. An auditor obtains the understanding from researching the clients business. An auditor will take inquires from management and personnel‚ observe client activities and operations‚ walk-through the business‚ and inspect client documents and records
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The consulting firm reviewed the cash‚ sales‚ accounts receivable‚ inventory and production functions. Based on this review‚ the consulting firm has prepared a proposal of internal controls for each function of the company. This proposal will give a background of each function and a list of the proposed internal controls. Cash Auto Parts Inc. manufactures and sells auto parts to car dealerships as well as the general public. Cash receipts come in the form of credit card‚ electronic payments
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Internal Controls Paper FIN/324 University of Phoenix November 2‚ 2005 Internal Controls Paper When it comes to the internal controls of firms and enterprises‚ executives are constantly keeping a close look on the accuracy and effectiveness of these controls along with seeking ways to better them. According to COSO (2004) the implementation of internal controls helps guide companies in reaching towards their profitability goals‚ the accomplishment of their mission statement‚ and helps minimize
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