Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

Audit procedures are highly effected by the strength level of internal controls. What do you think?

user-image
Question added by Asif Umer , Accounting Manager , Garden College Ltd
Date Posted: 2013/08/03
Sheraz Tarar FCCA, CIA
by Sheraz Tarar FCCA, CIA , Finance Officer - Senior Manager , Humania Capital

Right. Internal controls do effect overall audit approach of external auditor. Where control enviornment is strong, a test of controls approach would generally result in increased audit efficiency as less testing would be required.

Internal audit has already moved from the control - centric era to the risk - centric era ! Risks not controls will mainly affect audit procedures !

kamran bashir
by kamran bashir , Assistant financial manager , Verage Ltd

It is right indeed my friend.In the present age auditors are adopting a risk based approach to auditing.In their initial assessment of internal controls if they realised that internal controls are weak then essentially they cant place reliance on them so they have to do their own detailed testing.
Also, any deficiencies in internal controls shall be reported to those charged with governance according to newly developed ISA265 Communicating deficiencies in internal controls to those charged with governance.

More Questions Like This

Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.