GC1:

IDENTIFY AT LEAST THREE AUDIT PROCEDURES FOR REVIEW AND TESTS OF

COMPLIANCE FOR ORGANIZATIONAL CONTROLS.

These are the three audit procedures for organizational controls :

a) Segregation of duties - it is used to minimize the existence of errors or fraud by making sure

that there is no employee that will have the ability to perpetrate and hide the errors in the

ordinary course of their duties.The primary irreconcilable duties that must be segregated are

composed of authorization or approval, custody of assets, recording transactions and

reconciliation. These arrangements will help to reduce the risks of possible errors and minimize

misstatements in the financial statement.

b) Physical controls- it focuses on securing the equipment, inventories,cash and other assets

permanently.These can be done through the use of strong locks or safes who's only authorized to

access is the assigned personnel to control them. This is important because it blocks the future

loss of theft and unusual damage and it determine the unexpected changes that may exist in the

assets and resolved it afterwards.

c) Reconciliation- it is very important to compare two similar data or records that are managed

by different people or entities to identify that all transaction details are complete,correct and

properly recorded .It can be done by reconciling the bank statements as well as the books of

accounts or ledgers to ensure that they are being controlled and to avoid unexpected losses.

Overall, these three audit procedures help the organizations or entities to minimize possible

errors or frauds that other people may commit and to guaranteed that it will lead the company to

be one of the successful in the industry.