| Posted: 22 Oct 2009 at 20:02 | IP Logged
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In layman's language :-
In accounting and auditing, internal control is defined as a process effected by an organization's structure, work and authority flows, people and management information systems, designed to help the organization accomplish specific goals or objectives.It is a means by which an organization's resources are directed, monitored, and measured.
The auditors of the organization measure the effectiveness of internal control through their efforts. They assess whether the controls are properly designed, implemented and working effectively. Remember only those controls that are suitably designed to prevent or detect material misstatements are subject to tests of operating effectiveness (Tests of controls)
Hope that helps !
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Divya - CO State
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Topic: Auditing test for internal controls
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