Generally speaking, internal control is a process. It is a dynamic "process." Use several sentences to explain what the "dynamic process" means?

 

2. Separation of duties is a critical internal control activity. The four types of functional responsibilities should be performed by different persons: (1) authorization, (2)record, (3) custody, and (4)periodic reconciliation.

Question 2: Please use an example to demonstrate how the separation of duties of these four responsibilities can safeguard financial information quality?

 

3. There are five-step analytic procedure: (1) develop an expectation, (2) define a significant difference, (3) compare expectation with the recorded amount, (4) investigate significant differences, and (5) document each of the preceding steps.

Question 3: What is the top-down approach to understanding the client's business nature and risk peculiarity?