Internal Control

Question 1

Five elements which together make up the internal control

Answer 1

1. the control environment
2. The entity’s risk assessment process
3. The information system
4. Control activities
5. Monitoring of controls

Question 2

Walk through tests

Answer 2

Walk through testing involves the auditor selecting a small sample of transactions and following them through the various stages in their processing in order to establish whether his understanding of process is correct

Question 3

The control environment

Answer 3

Is referred to as the general attitude to internal control of management and employees in the organisation

Question 4

Elements of control environment

Answer 4

1. Communication and enforcement of integrity and ethical values
2. Commitment to competence
3. Participation of management
4. Management’s philosophy and operating style
5. Organisational structure
6. Assignment of authority and responsibility
7. Human Resource policies and practices