Auditing Financial

Auditing Financial

CHAPfER6 INTERNAL CONTROL IN A FINANCIAL STATEMENT AUDIT
Answers to Review Q8estions
6-1 From management's p erspe ctive. the internal control provides a way to meet its stewardship or agen cy r esponsibilities. Management also needs a control system that generates reliabl e infornlation for decision-making purposes. The importance of internal control to the auditor is rooted ill th e se cond standard of fiel dwork.. The controls that are relevant to th.e entity's ability to initiate. record" p.fo cess.
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6-2 The potential benefits and risks to an entity' s internal control from infonnation t echnology include (s ee Table 6-1 ):

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