A2 - Quality Control, Engagement Acceptance, Planning, and Internal Control

Question 1

What are the components of internal control?

Answer 1

Control Environment
Risk Assessment
Information and Communication Systems
Monitoring Activities
Existing Control Activities

Question 2

What are control activities in strong system of internal controls?

Answer 2

Prenumbering of Documents
Authorization of Transactions
Independent Checks to Maintain Asset Accountability
Documentation
Timely and Appropriate Financial Performance Reviews
Information Processing Controls
Physical Controls for Safeguarding Assets
Segregations of Duties

Question 2

List documentation the auditor may used for understanding internal controls

Answer 2

Flowchart
Internal Control Questionnaire or Checklist
Narrative
Documentation

Question 2

List elements of quality control.

Answer 2

Human resources
Engagement/client acceptance and continuance
Leadership responsibilities
Performance of the engagement
Monitoring
Ethical requirements