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Topic 1
Find an article that talks about internal control assessment. Based on the article and the reading in the text discuss what significant elements should a CPA firm’s methodology for assessing internal controls have? Why is each of these elements important? What risk does the CPA firm run if each of these elements were not included in the assessment of internal controls process?
Topic 2
Management asserts that entity-level controls are designed adequately and operating effectively to reduce to an acceptably low level the risk of managers and employees embellishing performance results or misusing company resources. What specific procedures would you as the auditor use to obtain audit evidence about the design and implementation of the client’s internal control system? What key controls would you expect to find in place if management’s assertion is true? What are the inherent limitations of internal control?
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