CA Inter P5 · Chapter 3 · Question 5 of 13
Which of the following is NOT a component of internal control described in SA 315?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) The external audit function
Explanation
SA 315 describes the components of the entity's system of internal control as the control environment, the entity's risk assessment process, the information system (including related business processes) and communication, control activities, and monitoring of controls. The external auditor is independent of the entity and is not part of its internal control.
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