Question

describe the responsibilities of various roles for implementing and evaluating internal controls

explain the steps used in evaluting internal controls

Answer 1

There is the several role management and teams perform while implementing and evaluating internal controls. Internal control is very essential for proper growth of organization.

Including management, board of directors and all personnel should be responsible for communicating upward problems in operations, non-compliance with the code of conduct, or other policy violations or illegal actions. Each major entity in corporate governance has a particular role to play.

Management is responsible for establishing and maintaining the control environment. Auditors play a role in a system of internal controls by performing evaluations and making recommendations for improved controls. 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.

Internal controls are like the structure, policies, and procedures used to ensure that management accomplishes its objectives and meets its responsibilities. Each department head, manager, and employees participate in establishing, properly documenting, and maintaining internal controls in each department.

These are the following steps used in evaluating internal controls-

1. Interview management
2. Interview employees
3. Observe processes
4. Test controls