Internal Control is a policy, procedure, set of rules, designed and implemented by management and those charged with governance, so as to obtain reasonable assurance regarding achievement of entity’s objective, to safeguard assets and protect from any chance of fraud or error. Its objective is operational efficiency and effectiveness for reliable financial reporting. The auditor during an audit checks whether Internal Control exists or not, and if it exists it is effective or not and followed in continuation or not. Weakness in internal control is defined as deficiency and the result of such deficiency in material misstatement in entity’s financial statements. To define: Weakness in entity’s control

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Chapter 14, Problem 14.15MCQ

To determine

Introduction:

Internal Control is a policy, procedure, set of rules, designed and implemented by management and those charged with governance, so as to obtain reasonable assurance regarding achievement of entity’s objective, to safeguard assets and protect from any chance of fraud or error. Its objective is operational efficiency and effectiveness for reliable financial reporting.

The auditor during an audit checks whether Internal Control exists or not, and if it exists it is effective or not and followed in continuation or not.

Weakness in internal control is defined as deficiency and the result of such deficiency in material misstatement in entity’s financial statements.

To define: Weakness in entity’s control

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