Briefly explain the ways in which the directors of a company discharge their duties with regard to the prevention and detection of errors and irregularities

Auditing and Assurance Revision Questions and Answers

Management/directors will first discharge their duties setting up systems of internal controls (assuming non existed before). This should be consistent with policies laid down.

Directors should be the first to adhere to the Internal control system since the employees will do what the directors do with respect to the controls. Director: should thus ensure adherence to the internal control systems and ensure any new employee is made aware of this.

Directors should constantly review the internal controls to ensure they are being followed and in the event of any loop hole that could result in an error or irregularity, they should be made aware immediately so as to take the necessary steps.

Constant review and assessment of staff members should be done management without notice. This will make staff to be alert and vigilant hence chances of errors will be reduced.

Directors should implement a thorough training session for new employees and emphasize the need for accuracy and competence in assignments and the need to comply with laid out policies.

Directors could reward competent employees, say with a promotion due to their astuteness and accuracy in their work. This will motivate other employees to follow the same, hence reducing possibilities of continued commission of errors.



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