Question

Discuss the internal control considerations and identify issues and risk mitigation strategies

Answer 1

Internal control is a method to ensure the integrity of financial and accounting information,targets and management policies.Its the measure of the target of the company with acctual performance and gives an idea of how the much they have to work on it to improve or which department needs more attention.management is responsible for internal control.there must be some consideration regarding internal control like, Internal control should be as per the general accepted auditing standards, The auditor should understand the importance of the internal control and plan accordingly, Proper documentation should be done as per the standards of auditing, Confidentiality should be also maintained as the internal control information is for the company's management

Risk mitigation is a proper systematic reduction to the exposure to risk and its chances of occurrence.the strategies of this is as follows:-

•Understanding the extent of risk involved and take a decision on it

•Adjust the requirements or put some constraints to it that eliminates the risk involved

•Take a proper action on time to reduce the likelihood of risk

•Re arrange the authority, responsibility and accountability to the stakeholders

•keep monitoring the chance involved in changes in the environment to tackle the risk