1. List and explain the primary objectives of effective internal control.

2. Compare management versus auditor resposabilities related to internal control.

Solutions

Expert Solution

Primary objectives of an internal control system are:

Compliance with applicable policies, procedures, plans, laws, regulations and contracts;;
Economic and efficient use of resources
Safeguarding of assets.
Reliability of financial reporting,
Effectiveness and efficiency of operations
Information and Communication
Monitoring of Activities

Managment Responsibilities for Internal Control;

Management is responsible for establishing and maintaining the control environment. every employee plays a role in either strengthening or weakening the Institution’s internal control system. Therefore, all employees need to be aware of the concept and purpose of internal controls.

Auditors Responsibilities for Internal Control;

Auditors play a role in a system of internal controls by performing evaluations and making recommendations for improved controls.auditor must understand each component of the client’s financial reporting controls. This includes the control environment, risk assessment process, information system, control activities that relate to the audit, and the client’s monitoring of the controls

ekkarill92 answered 1 year ago

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