ACC 490 Week 3 DQ 2

Auditors have to consider an organizations internal control so the audit will be effective, efficient, and so they will have awareness of where misstatements might occur.  An auditor must understand the procedures and policies and the length of operation per each component of internal control; control environment, risk assessment, information and communication, control archives, monitoring, and antifraud programs  and control.

The key elements of internal control are:

1.       Identify the types of potential misstatements that may occur

2.       Understand the factors that affect the risk of material misstatement

3.       Design further audit procedures (Boynton and Johnson, 2006, p. 422).
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