What control activities are applicable to a financial statement auditDocument Transcript
WHAT CONTROL ACTIVITIES ARE APPLICABLE TO A FINANCIAL STATEMENT
Summary: Management is responsible for implementing effective internal control and
for providing reasonable assurance that accounting data is accumulated, recorded, and
reported properly and that assets are safeguarded. Internal control activities is
applicable financial for financial statement or corrective actions to material weaknesses
the reported in prior year audits that affect the financial statements.
Financial management start in the critical areas of cash management and bookkeeping,
which should be done according to certain financial controls to ensure integrity in the
bookkeeping process so that Internal control obtain sufficient evidence to support an
opinion on internal control over financial reporting.
The corporate governance and risk management; and internal control forms the third
component of this stool. Good governance is dependent on a management that
understands the risks it faces and is able to keep control of the business that internal
control is the most important and fundamental concept
An Audit of Internal Control over Financial reporting that is integrated with an Audit of
Financial Statements Effective internal control over financial reporting exists when
there are no materials Weaknesses. The auditor must obtain reasonable assurance that
no material weaknesses exist in internal control over financial reporting.
Internal are most applicable to establish the requirements for performing an audit of
management’s assessment of the effectiveness of internal control over financial
reporting. Management’s assessment is integrated with an audit of the financial
statements. When effective internal controls are not in place and not applied day in and
day out to every transaction, minimal reliance can be placed on the resulting financial
statements and reports.
Management is responsible for implementing effective internal control and for providing
Reasonable assurance that accounting data is accumulated, recorded, and reported
properly and those assets are safeguarded. Internal control over financial reporting;
therefore, internal control review to following up on the status of corrective actions
related to material weaknesses in prior year audits that affect the financial statements.
The control activities are applicable when the following financial statements are not
materially misstated, there may be one or more material weaknesses in internal controls
over financial reporting.
• Pertain to the maintenance of records that, in reasonable detail, accurately and fairly
reflect the transactions and dispositions of the assets of the company.
• Provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting
• Provide reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use or disposition of the company’s assets that could have a material effect
on the financial statements.
Conclusion: the effective systems of internal financial controls do not exist, are weak,
or are ignored altogether; accurate and timely agency accounting and reporting is a
nearly impossible task. the company’s principal executive and principal financial officers,
or persons performing similar functions, and effected by the company’s board of
directors, management, and other personnel, to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting principles and
includes those Policies and procedures.