Internal Controls, an Internal Audit Function, and an Audit Committee

question 28

Essay

Internal controls, an internal audit function, and an audit committee are all elements of a strong corporate governance system. How should an external auditor evaluate these elements in making a risk assessment? What are the ethical signs that each system is operating as intended?

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Definitions:

Cognitive Impairment

A decline in memory, language, thinking, or judgment that may impact everyday activities.

Spinal Cord Injury

Damage to the spinal cord that results in loss of function, such as mobility or sensation, below the level of the injury.

Diaphoretic

Characterized by profuse sweating, often as a symptom of illness or a response to medication.

Hypertensive

Relating to, or suffering from hypertension, which is high blood pressure.