GUILARAN, Kerr John B.

BSA51KB1

Chapter 6 Consideration of Internal Control

(Reflection Paper)

In every organization, there are rules that everyone inside it are

expected to follow. There are also standards that govern every action suited
in a specific situation. These things are set to facilitate coordination between
the

divisions

and

dependability

with

respect

of

their

duties

and

responsibilities in the organization. In an audit engagement, internal control

of the client is designed to provide reasonable assurance regarding the
achievement

of

objectives

such

as

reliability

of

financial

reporting,

effectiveness and efficiency of operations and compliance with applicable

laws and regulations. Ive learned that if the entitys internal control is weak,
it affects the whole organization. It also affects the reliability of evidences
about economic assertions that will be used by an external auditor in
conducting an audit. Clients system of internal control is very essential in
generating reliable financial information. The auditor should obtain an
understanding of the accounting and internal control systems sufficient to
plan the audit and develop an effective audit approach. Finally, clients
internal control needs to be considered, to assess the level of control risk
that is needed in conducting an audit.