My Flash Cards

Question 1

Factors to understand the entity and environment?

Answer 1

1-industry and regulatory 
2-nature of the entity 
3-selection and application of accounting policies
4-objectives and business risk
5-entity financial performance

Question 2

Five components of internal controls

Answer 2

1-Control environment
2-Risk assessment
3-information and communications 
4-Monitoring 
5-Existing control activities