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Flashcards in 1-internal control concepts Deck (3)
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1

auditor gets an understanding of a company internal control by

inquiry
observation
review of documentation

2

how does an auditor document his understanding of internal control

flow charts of transaction cycles
internal control questionnaire
narrative write ups

perform a walk through. this is not documentation but rather to get an understanding of I.C.

3

what is a transaction cycle and what are the types of transaction cycles

group of homogeneous transactions, that is transactions of the same type.

types of transactions cycles are
revenue/receipts
expenditure/disbursements
payroll
financing/investing activities
inventory(especially if manufactured and not purchased)