Auditing II - Internal Control

Nindita Rahmalaudina - C1L014037
1.What is internal control ?
2. Why in auditing we have to understand and examine the internal control of the entity?

          Internal control is a way that used by a management to make sure that the plan of an entity can goes well. It's necessary for an entity to have an internal control to manage their business circulation. Without internal control, the work of every division in a company can be complicated.

          When an auditor make an audit for a company, internal control can help when the auditor collect the data. Good internal control serve information neatly for sure. Internal control make their job easier than do audit in a company who's not implementing internal control. The auditor can evaluate the internal control of a company in audit process. Internal control also used for matched the company's performance with the audit result. Is the bad audit result caused by bad internal control of an organization or any factors?

          The auditor can give a suggestion for company's improvement even it's not write in auditor's opinion page.