When Considering a Client's Internal Control,the Auditors Focus on Its

question 41

Essay

When considering a client's internal control,the auditors focus on its various characteristics.For each of the following characteristics indicate the auditors' responsibility under generally accepted auditing standards and the procedures used to meet that responsibility.
a.The design of internal control.
b.Controls have been implemented (placed in operation).
c.The operating effectiveness of controls.

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Definitions:

Adjusting Entries

Entries made at the end of an accounting period to ensure that companies follow the revenue recognition and expense recognition principles.

Fair Value

An estimate of the market value of an asset or liability, based on current conditions and willing parties' transactions.

Debt Investments

Investments made by purchasing debt instruments, such as bonds, where the investor becomes a creditor to the issuer.

Journal Entries

Recorded transactions in the accounting journal that show the financial activities of a company.