Internal Control

Management override

Collusion among employees

Inefficiency of internal auditor

Abuse of authority

President Finance

President system

Managing Director

CEO

Establish controls and executes them

Records cash receipts and cash payments

Perpetuate errors and frauds and conceals them

Record the transaction in journal and ledger

Existence of controls

Effectiveness of controls

Continuity of controls

Designing of controls

Accounting controls

Control environment

Control procedures

Supervision

If internal control is effective

Accounting system is well documented

Written evidence is there to support transactions

None of these

Cost accounting system

Internal control system

Legal compliance

Accounting system

Performance and observation

Inquiry and analytical procedures

Comparison and conformation

Inspection and verification

Document the conclusions

Documents the reasons along with conclusions

Perform tests of control

Perform walk through tests