Evaluation of Internal Control

Evaluation of Internal Control

In accounting, the study of the procedures that a company uses to check its own work for accuracy. In an audit in the United States, an auditor is required to evaluate internal controls to ensure that they are sufficient and to report on real or potential problems with them. See also: Internal audit.
References in periodicals archive ?
The company is also in the process of completing its evaluation of internal control over financial reporting for 2018 and finalizing related disclosures in the Form 10-K.
Effective internal audit system exists which is responsible for evaluation of internal control system on continuous basis and reports directly to the Head Office.
* Be relevant to an evaluation of internal control over financial reporting.
Similarly, the SEC has extended the compliance date for related requirements regarding evaluation of internal control over financial reporting and management certification requirements, including certification and related requirements applicable to registered investment companies.
The commission similarly has extended the compliance date for related requirements regarding evaluation of internal control over financial reporting and management certification requirements, including certification and related requirements applicable to registered investment companies.
The rule indicates that the framework must be: (i) free from bias, (ii) sufficiently complete, (iii) relevant to an evaluation of internal control over financial reporting, and (iv) able to allow consistent qualitative and quantitative measurements of a company's internal control.
Specifically, it includes discussion on matters related to the evaluation of internal control structure and audit evidence-gather functions.
Internal audits are conducted annually and include an evaluation of internal control systems and procedures, a review of financial statements, and monitoring for compliance with policies and procedures for the prevention of money laundering.
Bonner and Lewis (1990) also investigated the relationship between ability and evaluation of internal control weaknesses.
* evaluation of internal control in computer-based systems (OBJ3)
In external auditing, the evaluation of internal control is required for purposes of assessing control and fraud risk, as well as for planning related substantive tests (AICPA 1995, 1983, 1979).
"The Auditor's Study and Evaluation of Internal Control." AICPA Professional Standards (AU320).
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