Page 72 - DCOM509_ADVANCED_AUDITING

Dilfraz Singh, Lovely Professional University
Unit 5: Evaluation of Internal Control System

Unit 5: Evaluation of Internal Control System Notes

CONTENTS
Objectives
Introduction

5.1 Objectives of Evaluation
5.2 Steps in Evaluation
5.3 Techniques of Evaluation

5.4 Flow Charts
5.5 Internal Control Questionnaires
5.6 Formulating Internal Control Schemes
5.7 Evaluation of Internal Controls with Special Reference to the Audit of Public Sector
Enterprises in India
5.7.1 Objectives and Relevance
5.7.2 Increasing Awareness in the International Context
5.7.3 Two Dimensions of Internal Control

5.7.4 Scope of Review
5.7.5 Advantages of Internal Control Evaluation
5.7.6 Inter-relationship between Audit and Internal Controls

5.7.7 Distinction between Control Environment and Control Procedures
5.8 EDP Environment –The New Dimension
5.8.1 Methodology for Evaluation
5.8.2 Internal Control Questionnaire
5.8.3 Methodology for Adoption while using the Questionnaire

5.8.4 Systems Based Audit (SBA)
5.8.5 Systems Control Evaluation
5.9 Summary

5.10 Keywords
5.11 Review Questions
5.12 Further Readings

Objectives

After studying this unit, you will be able to:

 Explain the objectives and steps of evaluation
 Discuss the techniques of evaluation

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