Internal control Consideration

Internal Control starts with a strong set of policies and procedures

Answer explanation

Internal control starts with a strong control environment

Management is directly responsible for internal controls

If the auditor has not obtained sufficient appropriate audit evidence as to a material financial statement assertion, the auditor shall attempt to obtain further audit evidence

"Internal control is a finance thing. We do what the Controller's office tell us to do"

Answer explanation

Internal control is an integral to every aspect of the business

Internal control is a process. It means to an end, not an end itself.

Internal control is essentially negative, like a list of "thou shall not's"

Answer explanation

Internal control makes the right things happen the first time and every time

External auditors may have a significant effect on an entity's internal control process however, they are not responsible for, nor are they a part of that process.

When the auditors plan to rely on control over a risk that auditor has determined to be significant risk , the auditor shall test those controls in the current period

Mangers properly accept a degree of risk when the cost of controlling that risk exceeds the benefit

Answer explanation

Cost vs. Benefits is one of the internal control limitations

The internal audit function does not have primary responsibility of establishing and maintaining internal controls