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Sir if questions ask that identify and explain FIVE components of an entity’s internal control for 5 marks
So here as we know that each control would carry 1 mark.
1)So for Monitoring of controls if I write that it is a process to assess the effectiveness of internal controls over time and taking necessary remedial action. Management achieves monitoring of controls through ongoing activities, separate evaluations, or a combination of both. Would it be enough to score 1 full mark?
2) For entity’s risk assessment process if I write that it includes how management identifies business risks relevant to the preparation of financial statements in accordance with the entity’s applicable financial reporting framework. Would it be enough to score 1 full mark?
No, the answer to this is:
Control environment
Risk assessment
Information system
Control procedures
MonitoringSee page 64 of our notes
Yes sir 5 components of internal control are Control environment,Risk assessment,Information system,Control procedures and monitoring
MonitoringBut as questions says that identify and explain FIVE components of an entity’s internal control for 5 marks.
So here as we know that each control would carry 1 mark.So I want to ask that
1) For Monitoring of controls if I write that it is a process to assess the effectiveness of internal controls over time and taking necessary remedial action. Management achieves monitoring of controls through ongoing activities, separate evaluations, or a combination of both. Would it be enough to score 1 full mark?
2) For entity’s risk assessment process if I write that it includes how management identifies business risks relevant to the preparation of financial statements in accordance with the entity’s applicable financial reporting framework. Would it be enough to score 1 full mark?
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