Question

Auditing

What can be learned from using internal control questionnaires? How is the information used and can it reduce control risk?

Answer 1

Point A

The internal control questionnaire is a document. Which is provided by an auditor to employees of company an audit. The questionnaire is very helpful to determine, that which area on focus for audit. Internal Control Questionnaire to help evaluate internal controlling specific areas. By asking questions. The auditor knows whether the company is keeping accurate records overall, and has evidence that shows who is responsible for which documents. The company receives the benefits of having a cheaper, faster and more effective audit because of the internal control questionnaire.

We can use internal control questionnaire for Evidence, Employee controls, Cash Controls, future audit, General Controls, Personnel Expenditures and Travel, Operating Expenditures etc.

So, we can learn very types of controlling power with using internal control questionnaire.

Point B

There are many type information used and can it reduce control risk:-

• Integration of duties

Internal auditors can identify where fraud risk exists and make recommendations to adequately mitigate such risks. The opportunity for errors or fraud is higher than in larger mismatched haldled by different peoples. Generally small businesses often struggle to properly integrate duties between employees.

• Monitoring key processes and controls

Senior management will be focuses on running the company and may not place enough highlighting on monitoring key processes or controls. An internal audit can help monitor and reduce errors and fraud.

• Estimate the risks

Having identified the hazards, you have to decide how possible it is that harm will come about, ie the level of risk and what to do about it. Risk is a part of everyday life and you are not expected to remove all risks.

• Regularly review your risk assessment.

On the some places not review on the risk, that you buy a new quipments, substances and procedures that could lead to new hazards. So it makes intellect to review what you doing on an ongoing basis, look at your risk assessment again and ask yourself.

So, on the view of above we can collect information and used & also reduce the control risk.