MGAD10H3 Lecture Notes - Audit Risk, Control Risks, Internal Audit
24 Aug 2012
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Chapter 9 - internal control an c risks. Elements of control environment (umbrella of other four internal control factors) 4: determine if there are effective, effective control activities. Assess control environment, qeneral risk is at 100% or 1. 0 accounting methods. Emphasize on transaction-related audit objectives, only to material misstatement. Apply test of controls when substantive tests not work lnterview with management. The auditor should check for: segregation of duties, authorizedtransactions, documented records, physical and logical control of, lndependent checks of data. Understand accounting sysfem - narrative description, flowchart, or transaction walkthrough assets. Accounting methods - duplicate sales and vendor"s invoice, otherwise, imoossible to audit. Design and conduct test of controls for internal audit lmpact of general controls on audit. Systems, acquisition, development, and maintenance controls controls: organization and management, systems, acquisition, development, operations and information system and maintenance controls support. Local machines vs. use outsource hardware or software.
