Internal Control Questions

Question 1

Responsibility of auditors and mngmt on compliance with laws and regulation

Answer 1

Mngmts responsibility. Auditor is to obtain sufficient appropriate evidence
ISA distinguishes auditor responsibility in 2 categories
1. Those that have direct impact on material amounts and disclosures
Obtain sufficient appropriate evidence
2. Those do not have direct impact but effect the operating aspects
Special audit procedures to identify non compliance

Question 2

Matters to consider while determining if deficiency is significant

Answer 2

1. Complexity, subjectivity
2. Susceptibility to fraud, error
3. Frequency
4. Likelihood of mm
5. How important to fr framework
   6, amounts exposed

Question 3

Importance of communication with TCWG

Answer 3

Assist both mngmt and auditor to understnd audit related matters
Have a constructive work environment
Helps auditor obtain information relevant to audit
Assist tcwg to oversee fr , reducing risk of mm

Question 4

Matters to be communicated with tcwg

Answer 4

Signifucant deficiencies
Signifucant difficulty
Written representation req
Planning and timing of audit