What is the difference between testing internal controls of public versus private companies?

Expert Solution

Internal Control: It is the safeguard or protection established by the management against all identified risk which are above the acceptable range as per the entity requirement.


a.	The internal Control are strict in both form of entity, but the level of expectationis higher in Public company as compared to that of Private entity.


b.	The Internal Control keeps or restrict the level of risk and fraud detective, shall provide a sense of confidence among investors, as they are very much eager about the financial viability of their investment and the furtehr vision and mission of the entity.




c.	It is mandatory for the public company to have internal control over the financial reporting however, there is no such mandatory requirement but can be followed vouluntarily by the private entity to develop the confidentiality of the various stakeholders.

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What is the difference between testing internal controls of public versus private companies?

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