Auditing: Principles and Techniques

Chapter 4

Internal Control, Internal Check and Internal Audit

CHAPTER OUTLINE

4.1 Introduction

4.2 Internal Control

4.3 Internal Check

4.4 Internal Audit

4.5 Auditor’s Independence

4.6 Distinction between Internal Control and Internal Audit

4.7 Distinction between Internal Check, Internal Audit and Internal Control

4.1 INTRODUCTION

An auditor must ensure that he fully understands the enterprise with which he is dealing before he determines his basic approach to an audit. He must familiarise himself with its organisation and comprehend the nature of the business. He must also ensure that he has thoroughly grasped any technicalities peculiar to the business. Only then will he be in a position to comprehend and identify the transactions which ...