(Ref: Para. 4(c) , 14-24 and A77-A121 ) This appendix further explains the components of internal control, as set out in paragraphs 4(c), 14-24 and A77-A121 as they relate to a financial report audit. Control Environment The control environment …

The following are examples of conditions and events that may indicate the existence of risks of material misstatement in the financial report. The examples provided cover a broad range of conditions and events; however, not all conditions and events are …

IT also poses specific risks to an entity’s internal control, including, for example: Reliance on systems or programs that are inaccurately processing data, processing inaccurate data, or both. Unauthorised access to data that may result in destruction of …

Manual elements in internal control may be more suitable where judgement and discretion are required such as for the following circumstances: Large, unusual or non recurring transactions. Circumstances where errors are difficult to define, anticipate or …

Manual elements in internal control may be less reliable than automated elements because they can be more easily bypassed, ignored, or overridden and they are also more prone to simple errors and mistakes. Consistency of application of a manual control …

The extent and nature of the risks to internal control vary depending on the nature and characteristics of the entity’s information system. The entity responds to the risks arising from the use of IT or from use of manual elements in internal control by …

There is a direct relationship between an entity’s objectives and the controls it implements to provide reasonable assurance about their achievement. The entity’s objectives, and therefore controls, relate to financial reporting, operations and …

Factors relevant to the auditor’s judgement about whether a control, individually or in combination with others, is relevant to the audit may include such matters as the following: Materiality. The significance of the related risk. The size of the entity. …

Controls over the completeness and accuracy of information produced by the entity may be relevant to the audit if the auditor intends to make use of the information in designing and performing further audit procedures. Controls relating to operations and …

Internal control over safeguarding of assets against unauthorised acquisition, use, or disposition may include controls relating to both financial reporting and operations objectives. The auditor’s consideration of such controls is generally limited to …