Internal Control

General Consideration
- Methods of information processing
- Organization and ownership characteristics
- Diversity and complexity of its operations
- Entity's size
- Regulatory and legal requirements
- Nature of its business
Components
Internal Control consists of 5 components:
- Control Activities
- Risk Assessment
- Information and Communication
- Monitoring
- Control Environment
Understandind of Internal Control
Assesment of Control Risk
Tests of Controls
Documentation
The Auditor is required to document the understanding of entity's internal control and the basis for concluding that control risk is below maxmam.
Audit Comittee