Oceanview Marine Company 131
Audit Program: NG 2725/2018
Evaluation of Internal Control over Acquisitions
December 31, 2018
Comments or WP
Initials | Date ‘Reference
Part 1: Obtain an understanding of the client’s
internal controls
1. Discuss the control environment, accounting Be | 1282019 =
system, and control activities with management
and client personnel.
Obtain and study client’s policy and procedures Be | 1282019 =
‘manuals and examine documents and records
‘used in accounting system,
Observe control-related client activities over Bc | 1282019 -
purchases and cash disbursements,
Part 2: Document your understanding of the
client’s internal control
4. Prepare a flowchart of the accounting system for | pe
acquisitions, including document flow,
processing, disposition of documents, and control
29/2019 | W/P 13-2
activities.
‘Complete the “Internal Control Questionnaire— | NG 2123201 | WIP 13-3
Acquisitions.” 9
Part 3: Preliminary assessment of control risk,
Using the information obtained above, complete |G zes2oe | WIP 13-4
the “Preliminary Assessment of Control Risk—
Acquisitions” matrin.