Internal controls are policies and procedures defined by the management to ensure the smooth functioning of the business processes. Internal controls ensure the complete and correct accounting and safeguards to the assets. Internal audit is an examination of the internal controls of the organization. The internal audit is performed by the internal auditor to check the existence and operating effectiveness of the internal controls. To discuss: The reason for the non-public company to choose independent internal auditor.

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Chapter 21, Problem 21.5RQ

To determine

Concept Introduction:

Internal controls are policies and procedures defined by the management to ensure the smooth functioning of the business processes. Internal controls ensure the complete and correct accounting and safeguards to the assets.

Internal audit is an examination of the internal controls of the organization. The internal audit is performed by the internal auditor to check the existence and operating effectiveness of the internal controls.

To discuss: The reason for the non-public company to choose independent internal auditor.

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