How to conduct a review of the internal control system

The review of internal control is an important part of modern auditing, and the review of internal control requires auditors to evaluate whether the sound procedures and internal systems of the internal control system of the audited unit are effectively implemented.

The review process for internal control is as follows:

1) Understanding and description of the internal control system.

Understanding and describing the internal control system is a prerequisite for reviewing and evaluating the reasonableness and effectiveness of internal control. Generally speaking, there are three steps to understanding and describing the internal control system:

Understand the internal control system; Describe the control system of the internal round slag department; Review the results described.

2) Preliminary evaluation of the internal control system.

After the auditor understands and describes the internal control system, he or she should make a preliminary evaluation of its dependability to determine whether the internal control system of the audited entity can be used as the basis for sampling during the substantive test. Through an initial evaluation of the internal control system, the auditors apply a compliance test only to those internal controls that they are prepared to rely on. The preliminary evaluation of the internal control system mainly includes the evaluation of its soundness and reasonableness.

The soundness of the internal control system. The soundness of the internal control system is reflected in the establishment of necessary controls for all operations, which should be evaluated from both the overall perspective and the specific business perspective. Evaluate the soundness of the internal control system.

First, it is necessary to analyze whether strong control has been established in the key parts of internal control, that is, the strong points of internal control; Second, it is necessary to analyze the weaknesses in internal control, that is, the weaknesses of internal control.

Reasonableness of the internal control system. Evaluate the reasonableness of the internal control system, that is, consider whether the layout of the control is reasonable, and whether there is excessive control or unnecessary control; whether the general control point is mistaken as the key control part; whether the control functions are clearly delineated; Whether the division of labor and containment between personnel is appropriate.

3) Conduct compliance testing of the internal control system.

The conformity test is an audit procedure for the effectiveness of the design and implementation of the internal control system. It is based on the need to properly evaluate the reliability of the internal control system. The reliability of an internal control system depends primarily on whether it is properly designed and effectively followed.

Legal Analysis: Contents:

1. The basic content of the internal control review according to the characteristics of the enterprise:

1) Whether the occurrence of various businesses has been properly authorized;

2) separation of incompatible duties;

3) Establish a post responsibility system to control the key links such as procurement, acceptance, warehousing, receiving, issuance, custody and disposal of physical assets, and control of accounting vouchers.

2. According to the characteristics of each grassroots unit, focus on the key points in the internal control test.

3. According to the needs of the enterprise credit dust industry, conduct a special internal control review of the weak links exposed in the actual work.

Methods: 1. Check the soundness and rationality of the internal control system of the evaluated unit.

Legal basis: Basic norms for internal control of enterprises》 Article 8 The enterprise shall establish an incentive and restraint mechanism for the implementation of internal control, and incorporate the implementation of internal control by all responsible units and all employees into the performance appraisal system to promote the effective implementation of internal control.

Legal analysis: content: 1. The basic content of the internal control review according to the characteristics of the enterprise; 2. According to the characteristics of each grass-roots unit, the key points in the internal control are tested; 3. According to the needs of the enterprise, conduct a special internal control review on the weak links exposed in the actual work.

Methods: 1. Check the soundness and rationality of the internal control system of the evaluated unit. 2. Review the effectiveness of the internal control system of Hunger Excitement.

Legal basis: Article 8 of the Basic Norms for Enterprise Internal Control An enterprise shall establish an incentive and restraint mechanism for the implementation of internal control, and incorporate the implementation of internal limb control by all responsible units and all employees into the performance appraisal system to promote the effective implementation of internal control.