How do I audit internal controls effectively?

How do I audit internal controls effectively?

To audit internal controls effectively, start by understanding the processes and risks involved. What specific area are you focusing on?

I'm focusing on financial reporting controls.

Great! Begin by assessing the design and implementation of controls. Are there any specific controls you want to evaluate?

Yes, I want to check the accuracy of financial statements.

You should verify the reconciliation processes and review any discrepancies. Have you gathered the necessary documentation?

Not yet, what documents should I collect?

Collect financial statements, reconciliation reports, and any internal audit reports. This will give you a comprehensive view.