Question

Carly Jackson is a staff auditor for KPMG. She has been asked to document the client's existing accounting information system so the engagement team can assess the client's adequacy of controls around financial reporting. She decides to begin by creating a flowchart to describe, analyze and evalute internal controls. What documentation tool should she use for this purpose?

-internal control flow chart

-system flowchart

-document flowchart

-dataflow chart

Answer 1

Carly Jackson should use a system flowchart to describe, analyze, and evaluate internal controls in the client's accounting information system.

Step-by-step explanation:

The documentation tool that Carly Jackson should use to create a flowchart to describe, analyze, and evaluate internal controls is a system flowchart.

A system flowchart provides a visual representation of the entire accounting information system, including the processes, inputs, outputs, and data flows. It helps auditors like Carly to understand and assess the effectiveness of internal controls in the client's financial reporting.

By creating a system flowchart, Carly can identify potential weaknesses or gaps in the system, allowing the engagement team to make recommendations for improvements.