Monday, April 15, 2019
Modern Auditing Essay Example for Free
Modern Auditing adjudicate(Components of internal control) The chapter identified five components of internal control. Listed below are specific control policies and procedures prescribed by Suntron Company.1. Management gives careful consideration to the requisite knowledge and skills personnel need at all levels of the organization. manipulate environment. Planning, executing, controlling, and monitoring and entitys activity is what is physical exertiond to develop an overall framework for an entity to meet its objectives.2. General controls and practise controls are established in the electronic info processing department. moderate activities, IT should be independent and should non correct data submitted by user departments.3. Management acts to reduce or eliminate incentives and temptations that might exceed individuals to engage in dishonest or illegal acts. Control environment. Management leads by example, by demonstrating righteousness and ethical behavior.4. Ma nagement is alert to complaints received from customers about billing errors. Monitoring. Management may receive straighten out evaluations, such as from bank examiners.5. Management gives special consideration to the risks that can arise from the use of entropy technology in the accounting system. Risk assessment. Management should consider the risk of spoof and the financial consequences that fraud presents.6. Employees responsibilities are assigned so as to avoid any individuals being in a position to both commit an error or irregularity and then conceal it. Control activiites. Inventory records should periodically be compared with inventory on hand.7. IT management has designed controls to prevent unauthorized use of IT equipment, data files, and computer programs. Control activities. Controlsthat are designed to provide reasonable assurance that the recording, processing, and reporting of data by IT are properly performed for specific applications.8. The processing of payrol l includes a check on the nitty-gritty number of hours submitted. If more than 65 hours are reported in a weekly pay period, the performance is printed on an exception report and put in a suspense file for additional reexamine or additional authorization. Control activities. Computer routines that is in place to detect incomplete, incorrect, or unreasonable data.9. Suntrons internal audit staff periodically assesses the effectiveness of various ICS components. Monitoring. Reporting deficiencies to audit committee or full board of directors. 10. Policy manuals, accounting and financial reporting manuals, and a chart of accounts. Information and communication. Providing an arrest of individual roles and responsibilities in regards to internal control over financial reporting. have been developed and implemented.Requireda. depict the components of internal control to which each policy or procedure relates. b. For each item, identify one other(a) policy or procedure for that intern al control component that is not on the preceding list.