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MAA303 Auditing Assignment: Internal Control

   

Added on  2020-05-28

8 Pages1396 Words36 Views
Running head: AUDITINGAUDITING Name of the StudentName of the UniversityAuthors NoteCourse ID
MAA303 Auditing Assignment: Internal Control_1
1AUDITINGTable of ContentsPART I: Internal Controls..........................................................................................................2Answer to Question 2.............................................................................................................2PART II: Strengths and Weaknesses of an Internal Control System.........................................2Answer to Question 1.............................................................................................................2Answer to Question 2.............................................................................................................3Answer to Question 3.............................................................................................................4Answer to Question 4.............................................................................................................4Answer to Question 5.............................................................................................................5Answer to Question 6.............................................................................................................5References..................................................................................................................................6
MAA303 Auditing Assignment: Internal Control_2
2AUDITINGPART I: Internal ControlsAnswer to Question 1It is seen that the responsibility of the client’s financial reporting control is seen toconsider the control environment risk as per the assessment process, information system andcontrol activities related to the audit process. This particular aspect is further seen to berelated to the monitoring controls (Sun and Liu 2014).Answer to Question 2The auditor verifies the understanding of the overall risks of the process of thecompany for selecting and testing of the controls which will be able to adequately answer therisk of misstatement to each relevant assertion. Understanding of the flow of the transactionsare depicted with relevant assertions. This is seen to include the transactions which areinitiated, authorized, processed, and recorded appropriately. The understanding is further seento be conducive for identifying the potential misstatements and the factors related to theunauthorized acquisition use of the assets of the company. The auditor needs to alsounderstand the way IT affects the company’s flow of the transactions (Boritz, Kochetova-Kozloski and Robinson 2015).PART II: Strengths and Weaknesses of an Internal Control System Answer to Question 1The three internal controls in the Caroma’ sales activities and accounts receivableareas are seen with:Pre- numbering of the sales invoice and producing more copies only based on it. Useof the sales invoice to make an entry in the sales journal and update the same in
MAA303 Auditing Assignment: Internal Control_3

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