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1、ACCAP7高级审计与认证业务知识辅导2本文由高顿ACCA整理发布，转载请注明出处One of the major revisions of ISA 315 relates to the inquiries made by external auditors of the internal audit function since internal auditors have better knowledge and understanding of the organisation and its internal control. This article addresses and hi
2、ghlights the components of internal controlThe International Auditing and Assurance Standards Board （IAASB） issues International Standard on Auditing （ISA） for international use. From time to time, ISAs are revised to provide updated standards to auditors. In order to enhance the overall quality of
3、audit, IAASB published a consultation draft on a proposed revision to ISA 315. The objective in revising ISA 315 is to enhance the performance of external auditors by applying the knowledge and findings of an entitys internal audit function in the risk assessment process, and to strengthen the frame
4、work for evaluating the use of internal auditors work to obtain audit evidence.In March 2012, ISA 315 （Revised） was approved and released. One of the major revisions of ISA 315 relates to the inquiries made by external auditors of the internal audit function since internal auditors have better knowl
5、edge and understanding of the organisation and its internal control. This article addresses and highlights the components of internal control.OBJECTIVES IN ESTABLISHING INTERNAL CONTROLSGenerally speaking, internal control systems are designed, implemented and maintained by the management and person
6、nel in order to provide reasonable assurance to fulfil the objectives that is, reliability of financial reporting, efficiency and effectiveness of operations, compliance with laws and regulations and risk assessment of material misstatement. The manner in which the internal control system is designe
7、d, implemented and maintained may vary with the entitys business nature, size and complexity, etc. Auditors focus on both the audit of financial statements and internal controls that relates to the three objectives that may materially affect financial reporting.In order to identify the types of pote
8、ntial misstatements and to determine the nature, timing and extent of audit testing, auditors should obtain an understanding of relevantinternal controls, evaluate the design of the controls, and ascertain whether thecontrols are implemented and maintained properly.The major components of internal c
9、ontrol include control environment, entitys riskassessment process, information system （including the related business processes,control activities relevant to the audit, relevant to financial reporting, andcommunication） and monitoring of controls.CONTROL ENVIRONMENTThe control environment consists
10、 of the governance and management functions andthe attitudes, awareness and actions of the management about the internal control.Auditors may obtain an understanding of the control environments through thefollowing elements.1. Communication and enforcement of integrity and ethical valuesIt is import
11、ant for the management to create and maintain honest, legal and ethicalculture, and to communicate the entitys ethical and behavioral standards to itsemployees through policy statements and codes of conduct, etc.2. Commitment to competenceIt is important that the management recruits competent staff
12、who possess the requiredknowledge and skills at competent level to accomplish tasks.3. Participation by those charged with governanceAn entitys control consciousness is influenced significantly by those charged withgovernance; therefore, their independence from management, experience and stature,ext
13、ent of their involvement, as well as the appropriateness of their actions areextremely important.4. Managements philosophy and operating styleManagements philosophy and operating style consists of a broad range ofcharacteristics, such as managements attitude to response to business risks,financial r
14、eporting, information processing, and accounting functions and personnel,etc. For example, does the targeted earning realistic? Does the management applyaggressive approach where alternative accounting principles or estimates areavailable? These managements philosophy and operating style provide a p
15、icture toauditors about the managements attitude about the internal control.5. Organisational structure The organisational structure provides the framework on how the entitys activities are planned, implemented, controlled and reviewed.6. Assignment of authority and responsibility With the established organisational structure or framework, key areas of authority and reporting lines should then be defined. The assignment of authority and responsibility include the personnel that make appropriate policies
