AFM351 Study Guide - Final Guide: Internal Control, Internal Audit, Financial Statement
15 Jul 2018
School
Department
Course
Professor
Document Summary
Chapter 22: tests of controls (sections 1, 2 and 3) A deviation occurs when the control is not performing as it was designed and expected to perform. Per cas 315 identifying and assessing the risks of material misstatement, internal controls are designed, implemented, and maintained to address identi ed business risks that threaten the achievement of the entity"s objectives. Cas 315 provides a useful framework for practitioners to use in considering how different aspects of an entity"s internal controls may affect the audit by dividing internal controls into ve components: Information systems relevant to nancial reporting and communication. These exist in the entity-level of the organization, as opposed to the detail transaction level. This sets the tone of an entity and re ects the overall attitude, awareness, and response of management and those charged with governance. Whether management, with the oversight of those charged with governance, has created and maintained a culture of honesty and ethical honesty and ethical behaviour.
