Intern kontrol og den kontrolbaserede revision

Ali Kufaishi

Student thesis: Master thesis


The purpose of this thesis is to study internal control and how it affects a company’s annual financial statements. Furthermore, the thesis investigates how weaknesses in internal control affect the audit and what responsibilities the auditor has in relation to reporting control deficiencies to management. Danish companies must comply with legislation which requires (i) that appropriate internal control is in place, (ii) that management describes internal control and risk management systems over financial reporting in the annual report and (iii) that listed companies have audit committees. Furthermore, Danish listed companies must comply with corporate governance recommendations or explain why they depart from any of them. COSO has issued an internal control framework that defines internal control and describes the elements that should be considered and implemented by companies. This framework is incorporated into the International Standards on Auditing (ISAs). The ISAs require that the auditor obtains an understanding of the entity’s internal controls. The ISAs and Danish legislation define the responsibilities that the auditor has in relation to reporting material weaknesses in internal control to the board of directors and other control deficiencies to the management. However, the auditor’s reporting will not always be exhaustive since the auditor is not required to evaluate or test all internal controls over financial reporting. The auditor can rely on the work of internal auditors when conducting his audit. When doing so, the auditor must perform procedures in order to evaluate the objectivity and competencies of the internal auditors and the work that he plans to rely on. When a company’s internal controls are weak the audit approach needs to be substantive. This will result in a less efficient audit and will make it more difficult for the auditor to meet deadlines while still having to obtain sufficient and appropriate audit evidence in order to form a conclusion on the financial statements.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
Publication date2013
Number of pages78