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Auditing Principles and Practices II CH I
Auditing Principles and Practices II CH I
By Anteneh D.
Definition of internal control
Internal control—a process designed to provide
reasonable assurance regarding the achievement of
company objectives in the:
Reliability of financial reporting,
Effectiveness and efficiency of operations, and
Compliance with applicable laws and regulations
A system of internal control consists of
policies and procedures designed to provide
management with reasonable assurance
that the company achieves its objectives
and goals. These policies and procedures
are often called controls, and collectively,
they make up the entity’s internal control.
Objectives of internal control