Page 15 - PowerPoint Presentation

GENERAL PRINCILES OF AUDITING

The External Auditor’s Interest in Internal Controls

• Primary purpose is to issue an opinion on the AFS,

but…

• AFS are a product of the entity’s info system which

includes the accounting system.

• The better the system of internal control, the more

likely AFS are to fairly present.

• The 5 components of internal control are therefore

very important to the External Auditor

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