Chapter 6: Systems of Internal Controls

What are Controls?

Responsibilities Regarding Controls

Responsibilities

Management Auditors

Responsibilities of Auditors

1. Understanding Components of Internal Controls

Control Environment
Components of ICS

Risk Assement Indirect Controls

Monitoring Controls

Control Activities

Direct Controls
Information and
Communication systems
2. Document

Documentation of
Controls

Narratives Flowcharts Questionnaires

3. Test

4. Report

5. Decide Extent of Substantive Procedures

Exam Focus