Week 3 - DQ 2

Why do auditors have to consider the internal controls of the organization? What are some key elements of internal control? Which are the most important? How will the auditor have to modify the audit program if the internal controls are deemed inadequate to support management assertions?

Response #1

Auditors have to consider an organizations internal control so the audit will be effective, efficient, and so they will have awareness of where misstatements might occur. An auditor must understand the procedures and policies and the length of operation per each component of internal control; control environment, risk assessment, information and communication, control archives, monitoring, and antifraud programs and control.

The key elements of internal control are:

1. ...