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Manpreet Kaur, Lovely Professional University Unit 7: Internal Control

Unit 7: Internal Control Notes

CONTENTS
Objectives
Introduction
7.1 Internal Control

7.2 Internal Control Process
7.2.1 Control Environment
7.2.2 Importance of Internal Control
7.3 Internal Auditing
7.4 Internal Check
7.5 Evaluation of Internal Controls with Special Reference to the Audit of Public Sector
Enterprises in India
7.5.1 Objectives and Relevance
7.5.2 Increasing Awareness in the International Context
7.5.3 Two Dimensions of Internal Controls

7.5.4 Scope of Review
7.5.5 Advantages of Internal Control Evaluation
7.5.6 Inter-relationship between Audit and Internal Controls
7.5.7 Distinction between Control Environment and Control Procedures
7.5.8 Control Procedures

7.6 EDP Environment – The New Dimension
7.6.1 Methodology for Evaluation
7.6.2 Internal Control Questionnaire
7.6.3 Methodology for Adoption while using the Questionnaire
7.6.4 Systems Based Audit (SBA)
7.6.5 Systems Control Evaluation

7.6.6 Inherent Limitations of Internal Control
7.7 Summary
7.8 Keywords
7.9 Review Questions
7.10 Further Readings

Objectives

After studying this unit, you will be able to:
Define and discuss meaning of internal control;
State the importance of internal control;

LOVELY PROFESSIONAL UNIVERSITY 115