ASSESSMENT OF THE INTERNAL CONTROL SYSTEM

The auditor is interested to know the internal control system in an entity to assess the manager's attitude towards internal control and knowing the manner in which managers perceive the importance of internal control. Activity continuity is the overall objective of the internal control system....

Full description

Saved in:
Bibliographic Details
Published in:Anale. Seria stiinte economice 2014, Vol.XX (20), p.225-230
Main Author: Mladin, Franca
Format: Article
Language:English
Subjects:
Economy
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:The auditor is interested to know the internal control system in an entity to assess the manager's attitude towards internal control and knowing the manner in which managers perceive the importance of internal control. Activity continuity is the overall objective of the internal control system. The manager's role is to create adequate internal control mechanisms to manage risks as they arise both from internal and external sources, due to economic, legal and operational changes. Internal control mechanisms reduce errors and malfunctions, giving a reasonable assurance to the entity's management that the set objectives will be achieved, but they cannot provide an absolute assurance that they will not occur. In order to obtain sufficient and thorough evidence after developing the audit procedure, the auditor should understand and know well enough internal control.
ISSN:1582-2680
1582-6333