The purpose of this assignment is to understand an entity's internal control environment, as well as auditor procedures necessary to audit internal control.

After viewing the unit material, apply critical thinking when answering the following questions. Submit your responses in a Microsoft Word document.

Describe the difference between preventive, detective, and corrective controls. What are some examples of each type?

What are some ways management can mitigate risks in an IT environment?

Internal control is intended to accomplish at least three objectives and consists of five components of internal control. List the three objectives and five components of internal control.

Describe the limitations of internal control. Why do limitations on internal control exist?

What are four potential tools available to the auditor for documenting her understanding of an entity's system of internal control?

What are some typical types of evidence that may be collected in testing an entity's internal controls?

Identify indicators of a material weakness in internal control over financial reporting.

Discuss the differences between a control deficiency, a significant deficiency, a material weakness, and the two dimensions of the control deficiency - likelihood and magnitude.

Discuss entity-level controls and provide examples of these types of controls.