Auditing

An internal control system has been described as comprising the control environment and control ' activities. It includes all the policies and procedures (internal controls) adopted by the directors and management of an entity to assist in achieving their objective of ensuring, as far as practicable, the orderly and efficient conduct of its business, including adherence to internal policies, the safeguarding of assets, the prevention and detection of fraud and error, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information'. Required: Explain the meaning and relevance to the auditors giving an opinion on financial statements of each of the management objectives above. [25 marks]