Chapter 6, Problem 6.5RQ

To determine

Introduction:Internal Control is defined as the process designed, implemented and maintained by those charged with governance, management and other personnel to provide reasonable assurance about the achievement of entity’s objectives with regard to reliability of financial reporting, effectiveness and efficiency of operations safeguarding of assets and compliance with applicable laws and regulations.

The auditor shall obtain an understanding of internal control relevant to audit. While obtaining understanding of controls the auditor shall evaluate the design of those controls and determine whether they have been implemented or not.

To distinguish:Betweensubstantive strategy and reliance strategy