Organisational Control and Audit - Course Notes

Question 1

If asked about internal control systems, what do you do?

Answer 1

Use the general objectives of internal controls

Use mnemonic SCARE

Question 2

What is the acronym for SCARE?

Answer 2

Safeguarding assets
Complying with laws and regulations
Accurate financial information
Reduce fraud
Efficient business

Question 3

What are the 4 general objectives for internal controls?

Answer 3

1. Effective and efficient conduct of business
2. Safeguard assets of business
3. Prevent and detect fraud
4. Reliability/completeness and accuracy of internal and external reporting
5. Compliance

Question 4

What are the types of task that you could be asked on organisational control and audit?

Answer 4

1. Evaluating a control environment
2. Identifying weaknesses in internal control systems
3. Justification of internal control systems
4. Evaluation of risk management systems
5. Recommendations for improvements in these areas
6. Recommendations relating to internal audit
7. Response to recommendations from auditors
8. Prepare a summary of control weaknesses and evaluate