What knowledge about the “information and communication systems support” component should an auditor obtain?
The auditor should obtain sufficient knowledge about the information system relevant to financial reporting. The information system generally consists of the methods and records established to record, process, summarize, and report entity transactions and to maintain accountability of related assets, liabilities, and equity. Communication involves providing an understanding of individual roles and responsibilities pertaining to internal control over financial reporting. Question: What is Meant by Monitoring? Answer: Monitoring is management’s process of assessing the quality of internal control performance over time. Accordingly, management must assess the design and operation of controls on a timely basis and take necessary corrective actions. Monitoring may involve: (1) separate evaluations, (2) the use of internal auditors, and (3) the use of communications from outside parties (e.g., complaints from customers and regulator comments). Is There a Relationship Between Internal Control
