Auditing

Introduction
In any companys prime object glass is to accomplish its specific objectives or goals efficiently and effectively. One mode this could be achieved by introducing proper security controls inside the entity. These inseparable controls be the key to securing the assets of any company or organisation. They number an important role in mitigating the risk of fraud and misappropriation. In the past many companies have collapsed over to material weaknesses repayable to poor internal control structures. This has become a study show up in many large organisations with widened span of control.
In this report the matters analysed revolve around the concept of risk. Brief overview is try regarding how the internal control weaknesses affect management, stakeholders and canvassors equally. Financial and non financial consequences of this issue are exemplified by real life instances. Some of the auditing standards such as ASA 240, ASA 260 and ASA 315 which has implications on precipitating weaknesses of internal control are also discussed herewith. Further, the major steps that have to be obtained preliminary to audits by assurance parties have been discussed. Finally, authors have come to a recommendation that can be useful for any audit purposes which relate to internal control.




Responsibility of Management
It is evident that the management by integrity person of an entity becomes more difficult as the entity expands its operations. Thus, the delegated responsibilities within the entity expand to different layers and management levels. Consequently, controls held earlier by one person shift towards many people within the organisation. Hence, it is perspicuous to expect irregularities and malpractices within financial records once control of the dust expands. Turnbull report 1999 (as cited in Gay and Simnett, 2005) suggested that effective financial controls including victuals of proper accounting records are vital for companies and these reliable records ensures the companies...If you trust to get a full essay, order it on our website: Orderessay



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