Compare the difference in the assessment of the internal control of a: 1.Large company during an...

Compare the difference in the assessment of the internal control of a:

1.Large company during an audit.

2. Medium company during an audit.

3. Small company during an audit.

Solutions

Expert Solution

1.Assessment of internal control in large company : -

a) Segregation of duties among the personnel.

b)Compliance with the relavent laws and regulations.

c)Human resource policies for hiring and training the employees.

d)Assets are limited to the authorized persons.

e)All the transactions are recorded, processed and approved

2.Assessment of internal control in Medium company : -

a) Even in the mid sized company a proper book keeping has to be ensured that the transactions are recorded and approved.

b) The assets which are dealtwith by the persons shall be authorised.

c)There shall be proper supportings for the expenses such as freight,fixtures etc

3)Assessment of internal control in small company : -

a) In a small company,it has to ensure that no duplication of entries are posted.because since a small company it may use a low budget acccounting software which may not be trustworthy.

b)Even for the small company maintainence of proper book keeping is necessary.

ekkarill92 answered 1 year ago

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