Acca aa s21 Notes

September 2021 to June 2022 exams
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Questionnaires can take many forms, for example:
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Internal Control Questionnaire (ICQ).
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Internal Control Evaluation Questionnaire (ICEQ)
An ICQ asks whether specific controls are in place, for example: “Are suppliers’ invoices cancelled 
when they are paid?” The answer “Yes” is good, the answer “No” is bad because it means that those 
invoices could be inadvertently paid a second time.
However, there are other controls that would meet the control objective that suppliers' invoices 
should not be paid twice. For example, they could simply be moved from one file to another, from an 
unpaid invoice file to a paid invoice file. 
ICEQs focus on identifying the controls that meet a control objective that can be expressed in 
different ways, for example:
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To ensure that suppliers cannot be paid for goods not received; or
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To ensure that suppliers are only paid for goods received.
ICEQs will almost certainly require greater skill from the auditor. Instead of simply having to find out if 
invoices are cancelled, the auditor has to assess whether or not invoices could be paid twice.
2. Components of internal control
These are the five components of internal control:
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The control environment 
provides the foundation for the other components of the system of 
internal control. It includes:
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How management’s oversight responsibilities are carried out (e.g. organisational culture and 
management’s commitment to integrity and ethical values)
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Oversight by TCWG (where separate from management)
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The assignment of authority and responsibility 
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How competent individuals are attracted, developed and retained 
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How individuals are held accountable for their responsibilities relating to the system of 
internal control.
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