Management is responsible for establishing and maintaining effective internal control over financial reporting under SOX Section 404. The auditor is responsible for auditing and reporting on management's assessment of the effectiveness of internal control. When evaluating control deficiencies, management and the auditor consider the likelihood and potential magnitude of misstatements. Management documents its assessment of internal control, which would include control objectives and activities, risk assessments, test results, and conclusions about control effectiveness. The auditor uses a top-down, risk-based approach to understand internal control, which involves evaluating period-end financial reporting processes and controls, obtaining an understanding of locations and business units selected for testing, and tracing transactions through information systems via walkthroughs.
Management is responsible for establishing and maintaining effective internal control over financial reporting under SOX Section 404. The auditor is responsible for auditing and reporting on management's assessment of the effectiveness of internal control. When evaluating control deficiencies, management and the auditor consider the likelihood and potential magnitude of misstatements. Management documents its assessment of internal control, which would include control objectives and activities, risk assessments, test results, and conclusions about control effectiveness. The auditor uses a top-down, risk-based approach to understand internal control, which involves evaluating period-end financial reporting processes and controls, obtaining an understanding of locations and business units selected for testing, and tracing transactions through information systems via walkthroughs.
Management is responsible for establishing and maintaining effective internal control over financial reporting under SOX Section 404. The auditor is responsible for auditing and reporting on management's assessment of the effectiveness of internal control. When evaluating control deficiencies, management and the auditor consider the likelihood and potential magnitude of misstatements. Management documents its assessment of internal control, which would include control objectives and activities, risk assessments, test results, and conclusions about control effectiveness. The auditor uses a top-down, risk-based approach to understand internal control, which involves evaluating period-end financial reporting processes and controls, obtaining an understanding of locations and business units selected for testing, and tracing transactions through information systems via walkthroughs.
7-1 (LO1,2) Briefly summarize management’s and the auditor’s basic responsibilities
under section 404 of sarbanes - oxley Act 2022
7-2 (L04) Discuss how the terms likelihood and magnitude play a role in evaluating the significance of a control deficiiency 7-3 (LO5) the first element in management’s process for assesing the efectiveness of internal control is determining which control should be tested . identify the control’s that would typically be tested by management 7-4(LO5,8) Describe how management and the auditor decide on which location’s or businees units to test 7-5(LO5) Management must document its assessment of internal control .what would such documentation include? 7-6(LO6) list the step in the auditor’s procees for an audit of ICFR 7-7 (LO7) how does the auditor evaluate the competence and objectivity of other who perform work for management? 7-8 (LO7,8) describe the step in obtaining an understanding of ICFR using a top - down , risk based approach. 7-9 (LO8) the period - end financial reporting process control are always important . what are those control and what sould the auditors evaluation of those control include? 7-10 (LO8) a walk -through involves tracing a transaction through the information system .what type of evidence does a walk-through provide to the auditor?