Auditor Consensus in Internal Control Evaluation and Audit Program Planning

1982 ◽  
Vol 20 (2) ◽  
pp. 745 ◽  
Author(s):  
Bruce R. Gaumnitz ◽  
Thomas R. Nunamaker ◽  
John J. Surdick ◽  
Michael F. Thomas
Keyword(s):  
Internal Control ◽  
Program Planning ◽  
Control Evaluation ◽  
Audit Program

Internal Control Evaluation of a Restaurant: A Teaching Case

2004 ◽  
Vol 19 (2) ◽  
pp. 229-237 ◽  
Author(s):  
Jack E. Kiger ◽  
Anna M. Rose
Keyword(s):  
Internal Control ◽  
Teaching Case ◽  
Control Procedures ◽  
Control Evaluation

This case provides you with an opportunity to gain an understanding of internal control in a practical setting—a restaurant. The case requires you to (1) obtain a restaurant as a client, (2) develop an understanding of the restaurant's processes for recording sales, (3) identify internal control strengths and weaknesses, and (4) explain the importance of each weakness and state how it may be eliminated. In addition, Version A of the case requires you to prepare a flowchart and write an internal control narrative, while Version B requires you to identify tests of controls. Restaurants must follow procedures to ensure that sales are recorded for all food served; otherwise, the food may be given away. Students must arrange to meet with a manager to inquire about the restaurant's internal control procedures in much the same way an auditor must meet with the management of a client.

Evaluation of Internal Control from a Control Objective Narrative

1999 ◽  
Vol 13 (1) ◽  
pp. 63-81 ◽  
Author(s):  
Mary B. Curtis ◽  
A. Faye Borthick
Keyword(s):  
Internal Control ◽  
Financial Statement ◽  
Accounting Firms ◽  
Class Testing ◽  
Evaluation Task ◽  
Control Objective ◽  
Control Evaluation ◽  
The Way

Many accounting firms have changed the way their auditors evaluate internal control. Instead of preparing flowcharts documenting transaction flows, they only document the controls that have a bearing on specific financial statement assertions. This shift in documentation marks a change in the structure of the internal control evaluation task from transaction flow to control objective. This case presents documentation organized by control objective for internal control of a company's purchasing cycle. The case includes discussion and objective format questions and is relatively short, which means it can be used as an in-class or out-of-class exercise or an in-class testing or assessment device on internal control evaluation.

The Research of Internal Control Evaluation Based on Fuzzy Comprehensive Evaluation Method

2012 ◽  
Vol 246-247 ◽  
pp. 858-861
Author(s):  
Zhi Hong Lin ◽  
Ting Ting Guo
Keyword(s):  
Internal Control ◽  
Evaluation Method ◽  
Comprehensive Evaluation ◽  
Evaluation Model ◽  
Fuzzy Comprehensive Evaluation ◽  
Target System ◽  
Comprehensive Evaluation Method ◽  
Key Points ◽  
Comprehensive Evaluation Model ◽  
Control Evaluation

Internal control evaluation is very useful to strengthen internal control, and to establish a scientifically target system is one of the key points of internal control. This article proceeds with the basic procedures of internal control, puts forward a target system, establishes a fuzzy comprehensive evaluation model based on fuzzy comprehensive evaluation, and people can utilize the model with some practical data of internal control in order to provide help for internal control evaluation.

scholarly journals Organizing internal audit at enterprises: a risk-based approach

2021 ◽  
pp. 15-18
Author(s):  
Iryna MAKSYMCHUK ◽  
Tetіana UMANETS
Keyword(s):  
Financial Reporting ◽  
Internal Control ◽  
Internal Audit ◽  
Financial Risks ◽  
Risk Map ◽  
Personal Opinion ◽  
Main Activity ◽  
Level Of Significance ◽  
Audit Program ◽  
Oriented Approach

The paper investigates organization of internal audit at risk-oriented enterprises. The differences between traditional and risk-oriented approaches of internal audit at enterprises are considered. The risk-oriented internal audit allows us to investigate not only financial risks that arise in internal control and accounting, and the risks of differentiated audit are to evaluate various risks groups: financial, operational, technical, informational, etc. Each group has a corresponding hierarchy. Thus, financial risks include accounting risks (second level), which in accordance with IFRS and GAAP requirements include three groups of economic risks: market risk, credit risk and risk of main activity - third level. The risk-oriented internal audit allows you to evaluate the risks at the level of the enterprise divisions. The introduction of the principles and postulates of the concept of "liability centers" in the enterprise allows, for example, in the implementation of expert risk assessment, use personal opinion of managers and specialists of various units in the formation of the chain of values of the enterprise. The risk-oriented internal audit focuses on assessing risks that are not enough or excessively controlled. At the same time, risks are taken into account by the level of significance on the Luckyert scale: minor, moderate and large. But for each subdivision, the level of materiality can be different - it is necessary to calculate the integral risk for the enterprise in general. The risk map of the financial department of the enterprise is built on the basis of the concept of stakeholders. It has been proved that the risk map allows monitoring of the risks of significant distortion of accounting (financial) and non-financial reporting in terms of responsibility centers. The prospects for further research are determined: the development of internal audit documents using the principles of risk-oriented approach - an audit plan, audit program, audit report, schedule document circulation of internal audit service, etc.

scholarly journals Internal audit in the period of economic changes and its role in evaluation of the entity’s internal control. Theoretical characteristics and practical approaches

2021 ◽  
pp. 19-28
Author(s):  
Cristina Vasile Dolghi ◽  
Elena Gheorghe Petreanu
Keyword(s):  
Control System ◽  
Internal Control ◽  
Assessment Tool ◽  
Internal Audit ◽  
Evaluation Process ◽  
Primary Role ◽  
Control Environment ◽  
Internal Control System ◽  
Control Evaluation ◽  
Method Of Evaluation

Internal control delivers guarantee and trust for investors, clients, suppliers, but also for the entity’s employees and other interested parties. As a result, an effective internal control system has a significant impact on the credibility of a modern entity and its activities, which is ensured by the entity’s management, through an appropriate process of evaluating the effectiveness of internal control. On the basis of those exposed, we sustain the opinion shared by many experts in the field, that the primary role in evaluating the internal control system is attributed to internal audit, because in line with current development trends, it supports the entity in maintaining effective controls by evaluating efficiency and effectiveness. As well as by promoting biased business actions. In this connection, the authors approach the study of the basic aspects of the internal control evaluation process in the light of the identification of the method, establishing and interpreting the indicators used in the evaluation, as well as determining the criteria and practical tools for evaluation. As a method of evaluation of internal control the systematic method of authors is proposed, which involves the evaluation of each component of it. This approach permits internal auditors to make an integrated consideration of the effectiveness of internal control in the entity of the internal control system in the good functioning of the entity, which contributes to the fulfillment of its strategic objectives. In addition, the research carried out highlights the performance of the assessment tool – the corresponding questionnaire, which was developed to evaluate the control environment of the entity and applied in the activity of public interest entities in the Republic of Moldova. This study offers the possibility to recognize the deficiencies within the control environment established at the entity and offers the possibility to the management of the entity to improve its functioning mechanism.

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