It Controls

Controls for Information Technology and Reporting and Evaluation

ACC/544

Controls for Information Technology and Reporting and Evaluation

Managing risk in an organization is one of the largest tasks for management to handle. Risk management helps protect the business from a loss due to poor accounting practices, as well as protection from fraud. Internal controls are important to risk management, they begin with the attitude that management takes toward the business and the implementation of policies and procedures that are used to build the foundation of the business.

There are options for an auditor to present a report on the company’s financial statement and to report on the company’s internal control over the financial reporting process. One option is to have two separate reports, the report on the fairness of the company’s financial statements and the report on internal controls over financial reporting. (Lowers, Ramsay, Sinason, & Strawser, 2007) These two reports get distributed with the company’s financial statements and other disclosures to upper management. Each of these reports would contain a separate title, the date and each would need to be signed. The second option is for presenting the two reports, is to prepare a combined report that will express the unqualified opinion on the financial statements, management’s assessment of the effectiveness of the internal controls over the financial reporting and the effectiveness of internal controls over financial reporting. (Lowers, Ramsay, Sinason, & Strawser, 2007) There are important items that should be in this report;

1. The responsibilities of the auditor and management in reference to the internal controls of the financial reporting process and the financial statements.

2. Details of the auditor’s engagement in reference to the internal controls of the financial reporting and the financial statements.

3. A clarification of the internal controls over the financial...