What is control risk, Financial Management

Assignment Help:

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.

 


Related Discussions:- What is control risk

Money market mutual funds (mmmfs), Since the operations in the money ...

Since the operations in the money market are dominated by institutional players, the retail investor's participation in the market seems to be limited. To overcom

Inflation in international markets, Inflation in International Markets ...

Inflation in International Markets In 1983, Gultekin tried to find out the relation between stock return and the inflation rates (expected/unexpected). He accomplished this by

Calculate the future value of annuity, 1.  An investor is thinking of inves...

1.  An investor is thinking of investing in a recurring deposit scheme that offers an interest rate of 12% per annum. The investment that he is planning is for the higher education

What is the trade payable days, What is the Trade payable days (turnover) ...

What is the Trade payable days (turnover) Year-end trade payables/Credit purchases (or cost of sales)x   365days This is the length of time taken to pay suppliers. The rat

Weak form level of efficiency-forms of efficiency, Weak form level of effic...

Weak form level of efficiency This level states that share prices fully reflect information in historic share price movement and patterns (past information/historic information

Show example on cross currency swap, 1. Of course a swaption will be needed...

1. Of course a swaption will be needed. The major reasons being that Bond A is callable after 3 years and matures in 4 years whereas Bond B matures in 5 years. It is understandable

International financial system, International financial system has always b...

International financial system has always been a debatable and crucial focus of the world discussion and it is mainly due to the repression of the economies especially after the cu

Baumol sales max theory, critically appraise baumol max. theory as an alter...

critically appraise baumol max. theory as an alternative objective of the firm

Statement used in working capital requirement, • Debtors :- Working Capi...

• Debtors :- Working Capital tied up in debtors must be estimated on the basis of cost of sales (excluding depreciation): [Cost of goods produces (that is raw materials + wages

Calculate amount of first coupon payment your organization, Your firm has p...

Your firm has presently issued five year floating-rate notes indexed to six-month U.S. dollar LIBOR plus 1/4%.  What is the amount of first coupon payment your organization will pa

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd