1-internal control concepts Flashcards
1
Q
auditor gets an understanding of a company internal control by
A
inquiry
observation
review of documentation
2
Q
how does an auditor document his understanding of internal control
A
flow charts of transaction cycles
internal control questionnaire
narrative write ups
perform a walk through. this is not documentation but rather to get an understanding of I.C.
3
Q
what is a transaction cycle and what are the types of transaction cycles
A
group of homogeneous transactions, that is transactions of the same type.
types of transactions cycles are revenue/receipts expenditure/disbursements payroll financing/investing activities inventory(especially if manufactured and not purchased)
