ASSESSMENT OF THE INTERNAL CONTROL SYSTEM
ASSESSMENT OF THE INTERNAL CONTROL SYSTEM

Summary/Abstract: The auditor is interested to know the internal control system in an entity to assess the manager's attitude towards internal control and knowing the manner in which managers perceive the importance of internal control. Activity continuity is the overall objective of the internal control system. The manager's role is to create adequate internal control mechanisms to manage risks as they arise both from internal and external sources, due to economic, legal and operational changes. Internal control mechanisms reduce errors and malfunctions, giving a reasonable assurance to the entity's management that the set objectives will be achieved, but they cannot provide an absolute assurance that they will not occur. In order to obtain sufficient and thorough evidence after developing the audit procedure, the auditor should understand and know well enough internal control.

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