Accounting and Finance Foundations

Unit 13

Accounting and Finance Foundations Unit 13: Auditing 996

Auditing

Chapter 30

Internal Controls

Answer each of the following questions. Use a separate sheet of paper to record your responses.

1. Who is ultimately responsible for preparing a business’s financial statements?


2. What are three things that good internal controls help to ensure?


3. What is management’s goal in implementing internal controls?


4. Explain two categories of internal control.


5. Why do managers assume that their internal controls possess inherent limitations,
   even if an auditor determines that the controls are effective?


6. What is audit sampling?


7. Which audit sampling method(s) should an auditor use?

Student Assignment

30.3.1