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. An Interim Period Audit means audit for the work carried out before financial year end. Interim Period is any period less than 1 fiscal year. To define: Effectiveness of internal Control after Interim Date

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Chapter 7, Problem 7.26MCQ

To determine

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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.

An Interim Period Audit means audit for the work carried out before financial year end.

Interim Period is any period less than 1 fiscal year.

To define: Effectiveness of internal Control after Interim Date

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