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What are four potential tools available to the auditor for documenting her understanding of an entity's...

What are four potential tools available to the auditor for documenting her understanding of an entity's system of internal control?

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Answer #1

Following are the four tools available to document an auditors understanding of an entites system of internal control.

  • The entity's procedures manuals and organizational charts
  • Narrative description: It is a complete and exhaustive description of the internal control system in operation as found by auditor
    by the auditor
  • Internal control questionnaires: It is a comprehensive series of questions regarding the entity's internal control
  • Flowcharts: This is a graphical presentation of each part of the system of internal control of an entity
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