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
International Finance Problem Analyze the attached case, along the lines indicated by the Assignment questions listed at the end of the case.  Since you will have plenty of tim

Q. Illustrate dividend valuation model? The business is being acquired as a going concern and earnings valuations rather than asset valuations are recommended. Even these are b

Define the term- Cash purchases     Shareholders of the target company are bought out completely and have no further stake in business. This is good if predator shareholders want

Briefly examine the significance of identification of investment opportunities in capital budgeting process

A fixed income security investor can expect to receive a rupee returns from the following sources: (a) Interest payment, (b) Capital gain or loss at maturity or when so

How does continuous compounding benefit an investor? The influence of increasing the number of compounding periods every year is to increase the future value of the investment. Th

Profit maximization Traditionally, this was considered to be the major goal of the firm. Profit maximization refers to attaining the maximum possible profits throughout the yea

Define the term- Future Cost and Historical Cost Future cost of capital refers to expected cost of funds to be raised to finance a project. In contrast, historical cost signifi

Your family purchased a house three years ago. When you bought the house you financed it with a $160,000 mortgage with an 8.5% nominal interest rate (compounded monthly). The mortg

What is the nature of a concessionary loan and how is it handled in the APV model? A concessionary loan is a loan that is provided by a governmental body at below the normal ma