Lesson: Introduction to Internal Controls and Information Technology Controls

In this lesson, Nick Palazzolo, CPA, offers an introductory overview of internal controls and information technology controls. He explains that internal controls consist of both policies and procedures that entities use to provide reasonable assurance in achieving their objectives and goals. The lesson highlights the differences between internal control over financial reporting and general internal controls. It also emphasizes the role of the auditor in identifying and communicating deficiencies related to internal controls, distinguishing between material weaknesses and significant deficiencies. Furthermore, he clarifies the auditor's responsibility concerning the detection of significant deficiencies in internal control as well as the communication of these deficiencies when discovered during an audit.