Internal Control Financial Statement Report 2022

Running head: INTERNAL CONTROL
INTERNAL CONTROL
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INTERNAL CONTROL1
Table of Contents
In Response to Question 1..........................................................................................................2
In Response to Question 2..........................................................................................................2
In Response to Question 3..........................................................................................................3
In Response to Question 4..........................................................................................................4
In Response to Question 5..........................................................................................................5
In Response to Question 6..........................................................................................................5
In Response to Question 7..........................................................................................................6
In Response to Question 8..........................................................................................................6
References:.................................................................................................................................7

INTERNAL CONTROL2
In Response to Question 1
The internal auditing is referred as the ongoing audit function which is performed
within the organization used by the separate internal auditing department. The internal
auditors are the auditors of the employees and they are hired by the company. The objective
of them is to review the routine activities and based on that provide suggestion based on the
improvements. The management of the company utilizes the internal audit and further
provide advice and other consulting assistance to the employees. Internal auditors of the
company issues risk associated with the business practices and risk associated with it and are
conducted throughout the year (Fracassi 2016).
The external audit is an audit which is performed by the independent body not
considered as the part of the organization. The significant objective of the external audit is to
analyze and verify the financial statement of the company. The external audit of the business
is conducted by the third party and the members of the report are the stakeholders of the
business. Further the opinion is provided based on the fairness and truthfulness of the
financial statement of the company (Gitman, Juchau and Flanagan 2015). The external
auditors further examines the financial records and opinion regarding the financial statement
of the company. The external audit is conducted based on the review services three times per
year.
In Response to Question 2
The key components of the internal control are as follows:
 Control Environment – The internal environment of the company consists of the
attitudes of the management, staffs and company as a whole. The internal
environment in that case must be manipulated by the organization (Knechel and
Salterio 2016).