ISA 315 (Revised): Identifying and Assessing The Risks Of Material Misstatement states that the auditor should obtain an understanding of internal control relevant to the audit. Auditors commonly use three types of documents to obtain and document their understanding of the design of internal control: narratives, flowcharts, and internal control questionnaires. REQUIRED: Describe THREE (3) inherent limitations of internal control system that could limit its effectiveness Explain TWO (2) advantages and ONE (1) limitation in using ‘Internal Control Questionnaire’ to document understanding of the internal control system.
ISA 315 (Revised): Identifying and Assessing The Risks Of Material Misstatement states that the auditor should obtain an understanding of internal control relevant to the audit. Auditors commonly use three types of documents to obtain and document their understanding of the design of internal control: narratives, flowcharts, and internal control questionnaires. REQUIRED: Describe THREE (3) inherent limitations of internal control system that could limit its effectiveness Explain TWO (2) advantages and ONE (1) limitation in using ‘Internal Control Questionnaire’ to document understanding of the internal control system.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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ISA 315 (Revised): Identifying and Assessing The Risks Of Material Misstatement states that the auditor should obtain an understanding of internal control relevant to the audit. Auditors commonly use three types of documents to obtain and document their understanding of the design of internal control: narratives, flowcharts, and internal control questionnaires.
REQUIRED:
- Describe THREE (3) inherent limitations of internal
control system that could limit its effectiveness - Explain TWO (2) advantages and ONE (1) limitation in using ‘Internal Control Questionnaire’ to document understanding of the internal control system.
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