10. Discuss how materiality and risk are relate d and integrated into the audit pre ocess Chapter 10: Internal Control and Control risk After studying this chapter, you should be able to 1. Contrast management's need for internal control with the auditor's need to consider internal control when designing an audit 2. Explain the five components of internal control 3. Explain methods used to obtain an understanding of internal control 4. Assess control risk by linking strengths and weaknesses of internal control to transaction-related audit objectives 5. Describe the process of designing and performing tests of controls Chapter 11: The impact of Information Technology on the audit Process Ob jectives After studying this chapter, you should be able to 1. De scribe how It improves internal control. 2. Identify risks that arise from using an it-based accounting system 3. Explain how specific types of general controls and application controls reduce risks associated with using It based accounting systems 4. Describe how the strength of general controls affects the auditor s testing of application controls. 5. Use test data, parallel simulation, and embedded audit module approaches when auditing through the computer. 6. Identify issues for environments involving microcomputers, networks, database management sy stems, and outsourced computer service centers10.Discuss how materiality and risk are related and integrated into the audit process. Chapter 10: Internal Control and Control Risk Objectives After studying this chapter, you should be able to: 1. Contrast management's need for internal control with the auditor's need to consider internal control when designing an audit. 2. Explain the five components of internal control. 3. Explain methods used to obtain an understanding of internal control. 4. Assess control risk by linking strengths and weaknesses of internal control to transaction-related audit objectives. 5. Describe the process of designing and performing tests of controls. Chapter 11: The Impact of Information Technology on the Audit Process Objectives After studying this chapter, you should be able to: 1. Describe how IT improves internal control. 2. Identify risks that arise from using an IT -based accounting system. 3. Explain how specific types of general controls and application controls reduce risks associated with using IT - based accounting systems. 4. Describe how the strength of general controls affects the auditor's testing of application controls. 5. Use test data, parallel simulation, and embedded audit module approaches when auditing through the computer. 6. Identify issues for environments involving microcomputers, networks, database management systems, and outsourced computer service centers