- This topic has 3 replies, 2 voices, and was last updated 7 years ago by
.
- Posts
Hi
1)If the question ask that in respect of Payroll system
a) Identify and explain 6 internal control deficiencies and
b) Recommend a control to address each of these deficiencies and
c) Describe a test of control company should perform to assess if each of these controls is operating effectivelySo here for each deficiency some times there are 2-3 controls which we can recommend and likewise there would be 2-3 Test of controls which we can write, BUT would writing 2-3 controls and 2-3 TOC’s be fine or shall we write just 1 control and likewise 1 TOC for each deficiency ?
2)Similarly if question ask that describe 6 audit risks, and explain auditor’s response to each risk
So here for each audit risk some times there are 2-3 responses which we can write, BUT would writing 2-3 responses be fine or shall we just write 1 response for each audit risk?
It says recommend ‘a’ control. That meams one. Similarly for ToC.
Writing more than one wastes time and will gain no more marks.
There was a corporate governance weakness that : Chairman has sole responsibility for liaising with shareholders & answering any of their questions.
For its explanation I wrote that: This is a role which the boards as a whole should undertake.
For its recommendation I wrote that: All members of the board should be involved in ensuring that satisfactory communication occurs with S/H’s. E.g all should attend meeting with S/H’s such as AGM.The board should state in annual reports the steps they have taken to ensure that the members of the board and in particular NED’s develop an understanding of the views of the major S/H’s about the company
I just want to ask that the recommendation which I have wrote would be counted as 1 recommendation OR would it be counted as 2 recommendations?
- The topic ‘Audit risk and test of controls’ is closed to new replies.