Page 53 - Internal Auditing Standards
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5. Internal Control — Purpose
and Components
Chapter Content Relevant ISA
To outline the purpose, scope, and nature of internal control over
financial reporting, including the five components to be evaluated by 315
the auditor.
Exhibit 5.0-1
Entity Objective = Prepare financial statements that are not materially misstated
Identify business/fraud risks that would prevent objective being achieved
Mangement’s response:
internal controls that mitigate the risks identified
Management’s
Residual Risk
Low Risk Exposure to Fraud and Error High
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