What is control risk, Financial Management

What is Control risk

That material misstatement could take place and not be detected, or prevented on a timely basis, by accounting and internal control systems.

All audits at their core are substantive.Effective internal controls (which is when CR is low) will reduce (not eliminate) substantive work. However should consider benefit/cost of audit approach.

Tests of control must be performed by auditor at the planning stage. This is to obtain audit evidence about effective operation of the accounting and internal control system and assess level of control risk. An appropriate audit plan can be produced based on this assessment.

 

Posted Date: 9/3/2013 3:49:53 AM | Location : United States







Related Discussions:- What is control risk, Assignment Help, Ask Question on What is control risk, Get Answer, Expert's Help, What is control risk Discussions

Write discussion on What is control risk
Your posts are moderated
Related Questions
Best practice or functional benchmarking Compare an internal function to 'the best' however not necessarily an organisation in same industry for example compare administrati

#how to calculate initial investment cash flows ..

How do risk-averse investors compensate for risk when they take on investment projects? Due to the risk aversion, people demand higher rates of return for taking on higher-risk p

iau.la/im/fin500.pdf need help with 100 questions with multiple answers quiz!

Illustration Consider a Rs.1,000 par value bond whose current market price is Rs.850. The bond carries a coupon rate of 8% and has a maturity period of 9 years. Wha

What are some of the primary advantages when a corporation has operations in countries other than its home country?  What are some of the risks? Foreign operations may decrease a

Explain in brief about Financial management These tools help the manager to figure out which sources offer the lowest cost offunds and which activities will provide the greates

Securities Exchange Act of 1934 With this Act, the Congress created the Securities and Exchange Commission. The Act empowers the SEC with broad authority over all aspects of th


Define the first aspect of capital budgeting decision The first aspect of capital budgeting decision relates to the choice of new asset out of the alternatives available or rea