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Internal control: COSO, the control environment and IT general controls

AUD Chapter 11 · Area II · Blueprint II.C.1–2

Every audit requires an understanding of internal control, and the COSO framework is the language used to describe it. Two Blueprint tasks here are pure recall: define internal control and name the components and principles. Two ask you to act: understand entity-level controls and test the design of IT general controls.

In this chapter

1. What internal control is, in one sentence
2. Five components and 17 principles
3. The COSO cube and what "effective" means
4. The control environment: tone at the top
5. What the auditor understands in each component
6. Entity-level controls
7. IT general controls
8. What the auditor must do: design and implementation

This chapter has 8 lessons, 50 practice MCQs with explanations and 13 simulations, plus flashcards and a recall sheet.

What this chapter covers

• COSO purpose, objectives, limits, five components and 17 principles
• entity-level controls
• IT general controls over access, change and operations

Chapter 10: Understanding the entity and its environment · Chapter 12: Business processes, walkthroughs and the IT environment