管理专业毕业设计外文翻译--内部控制透视：理论与概念(编辑修改稿)

管理专业毕业设计外文翻译--内部控制透视：理论与概念(编辑修改稿)内容摘要：

trol must be evaluated in order to provide management with some assurance regarding its effectiveness. Internal control evaluation involves everything management does to control the organization in the effort to achieve its objectives. Internal control would be judged as effective if its ponents are present and function effectively for operations, financial reporting, and pliance. he boards of directors and its audit mittee have responsibility for making sure the internal control system within the organization is adequate. This responsibility includes determining the extent to which internal controls are evaluated. Two parties involved in the evaluation of internal control are the organization39。 s internal auditors and their external auditors. Internal auditors39。 responsibilities typically include ensuring the adequacy of the system of internal control, the reliability of data, and the efficient use of the organization39。 s resources. Internal auditors identify control problems and develop solutions for improving and strengthening internal controls. Internal auditors are concerned with the entire range of an organization39。 s internal controls, including operational, financial, and pliance controls. Internal control will also be evaluated by the external auditors. External auditors assess the effectiveness of internal control within an organization to plan the financial statement audit. In contrast to internal auditors, external auditors focus primarily on controls that affect financial reporting. External auditors have a responsibility to report internal control weaknesses (as well as reportable conditions about internal control) to the audit mittee of the board of directors. 8. Limitations of an Entity39。 s Internal Control Internal control, no matter how well designed and operated, can provide only reasonable assurance of achieving an entity39。 s control objectives. The likelihood of achievement is affected by limitations inherent to internal control. These include the realities that human judgment in decisionmaking can be faulty and that breakdowns in internal control can occur because of human failures such as simple errors or mistakes. For example, errors may occur in designing, Maintaining, or monitoring automated controls. If an entity’s IT personnel do not pletely understand how an order entry system processes sales transactions, they may erroneously design changes to the system to process sales for a new line of products. On the other hand, such changes may be correctly designed but misunderstood by individuals who translate the design into program code. Errors also may occur in the use of information produced by IT. For example, automated controls may be designed to report transactions over a specified dollar limit for management review, but individuals responsible for conducting the review may not understand the purpose of such reports and, accordingly, may fail to review them or investigate unusual items. Additionally, controls, whether manual or automated, can be circumvented by the collusion of two or more people or inappropriate management override of internal control. For example, management may enter into side agreements with customers that alter the terms and conditions of the entity’s standard sales contract in ways that would preclude revenue 4 recognition. Also, edit routines in a software program that are designed to ident。