• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

internal control

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › internal control

  • This topic has 2 replies, 2 voices, and was last updated 9 years ago by mansoor.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • November 2, 2015 at 9:36 am #280043
    mansoor
    Participant
    • Topics: 424
    • Replies: 542
    • ☆☆☆☆

    explain why is it necessary for the auditor to understand an entity’s internal control system when assessing risk ? 5 marks

    1. strength of the IC determines the level of control risk and a strong or a weak IC will determine the extent of Tests of control and Substantive tests

    2.
    3
    4
    5

    since the question is 5 marks, sadly i cd only come up with one point.

    if i cd have simple points, i can expand them myself

    thanks!!!

    November 3, 2015 at 7:40 am #280179
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10595
    • ☆☆☆☆☆

    I would start by saying that audit risk is:

    Inherent risk x control risk x detection risk.

    The amount of work needed to achieve and acceptable audit risk for a client therefore depends on the control risk.

    If the IC is poor, control risk is high and more audit work is needed, particularly substantive tests because there are few controls to subject to tests of controls.

    If the IC is good, control risk is low and less audit work is needed. Additionally, most of that audit work will focus on testing the controls to ensure that they can be relied upon.

    November 3, 2015 at 8:20 am #280190
    mansoor
    Participant
    • Topics: 424
    • Replies: 542
    • ☆☆☆☆

    thank u sir!!

  • Author
    Posts
Viewing 3 posts - 1 through 3 (of 3 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • askar.turganbayev@gmail.com on AA Chapter 2 Questions
  • RashidMh on MA Chapter 1 Questions Accounting for Management
  • John Moffat on Relevant Cash Flows for DCF Relevant Costs (example 1) – ACCA Financial Management (FM)
  • John Moffat on Accounting for Management – ACCA Management Accounting (MA)
  • Hsaini on Accounting for Management – ACCA Management Accounting (MA)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in