Internal Control (re-post 1st assignment)
Ghina Rizqy
C1L014020
I re-post this since it was accidentally deleted while posting another assignment.
Internal Control
Why is it important?
Here is a link for more information related to internal control, hope it will help you to learn.
C1L014020
I re-post this since it was accidentally deleted while posting another assignment.
INTERNAL CONTROL - AUDITING II
Internal Control
Internal control is a process which is run to give reasonable assurance about the effectiveness and efficiency from the operational activity, reliability of the financial report, and the compliance with the rules and law. Moreover, internal control is actually influence all company's activities.
Since internal control influence all company's activities, means that internal control held an important role in controlling many aspects and factors in company. It also will affect the decision making and the result which is made.
Why is it related to an auditor?
In accounting, standard of internal control which is used in a company is an important factor which will determine the reliability of the company's financial report. So an auditor rely on the effectiveness of the internal control of that company to prevent the material failure/mistake in accounting process. Furthermore why auditor need this internal control information because:
- Manager is not able to control directly or personally to the running of the company because of the scale of the company that can be so complex. So manager tend to believe on the reports which are collected to them. So review and recheck on the internal control is a compulsory to protect from human errors and irregularities that might happen.
- It is not easy for the auditor to perform an auditing in whole or detail for almost all company's transactions in limited time and cost. So to make the auditing more effective and efficient, recheck whether the internal control is effective and efficient or not is helpful. Because after knowing the result, auditor can determine the extent or scope of the audit and also the evidence that should be collected.
Here is a link for more information related to internal control, hope it will help you to learn.
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