Auditing and assurance revision question and answer

Auditing and Assurance Revision Questions and Answers

“Internal control questionnaire is a method to collect information about the existence, operation and efficiency of internal control in an organization”. Discuss. (8 Marks June 2010) Answer:
Or
Explain briefly the technique of “Internal Control Questionnaire” to facilitate the accumulation of information necessary for proper evaluation of internal control.
Or
Write short notes on Internal control questionnaire

answer
Internal control questionnaire is a series of questions concerning internal control. An important advantage of the questionnaire approach is that oversight or omission of significant internal control review procedures is likely to occur with this method. With a proper questionnaire, all internal control evaluation can be completed at one time or in sections. The review can more easily be made on an interim basis. The questionnaire form also provides an orderly means of disclosing control defects. In the questionnaire, generally questions are so framed that ‘Yes’ answer denotes satisfactory position and a ‘No’ answer suggests weakness. Provision is made for an explanation or further details of ‘No’ answer. In respect of questions not relevant to the business, ‘Not Applicable’ reply is given.
The questionnaire is usually issued to the client and the client is requested to get it filled the concerned executives and employees. If on a perusal of the answer, inconsistencies or apparent

incongruities are noticed, the matter is further discussed auditor’s staff with the client’s employees for a clear picture. The concerned auditor then prepares a report of deficiencies and recommendations for improvements.
An important advantage of the questionnaire approach is that oversight or omission of significant internal control review procedures is less likely to occur with this method. With a proper questionnaire, all internal control evaluation can be completed at one time or in sections. The review can more easily be made on an interim basis. The questionnaire form also provides an orderly means of disclosing control defects. It is the general practice to review the internal control system annually and record the review in detail.



(Visited 12 times, 1 visits today)
Share this on:

Leave a Reply

Your email address will not be published.