The internal control structure includes the plan of organization and all of the coordinate methods and measures adopted within a business to safeguard its assets, check the accuracy and reliability of its accounting data, promote operational efficiency, and encourage adherence to prescribed managerial policies.

Required:

a What is the purpose of the auditor's consideration of the internal control structure?

b What are the objectives of obtaining an understanding of internal control structure?

c. How is the auditor's understanding of the internal control structure documented?

d. What is the purpose of tests of controls?