Measuring the effectiveness of internal control of Otto Spinning Limited

Abstract

"One of the important steps for starting an audit is to measure the effectiveness of internal control of an organization in the form of collecting and analyzing both qualitative and quantitative data quality and data management by the concerned organization. And based on the certain level of effectiveness of internal control, the auditor determines the key audit factors such as sampling size, materiality, substantive test and so on and which finally leads forming the auditor's opinion on the efficiency and accuracy of financial performance. Measuring effectiveness of internal control helps auditors to assess and determine audit risks involved in the subject matter. Since working as a member of the audit conducting team at Sadhan Das & Co. Chartered Accountants for over 3 years, I have worked very closely with a good number of management and employees of various organizations across many industries and I am quite fascinated to witness many different ways and methods to manage businesses by different organizations and how dynamically we have to work around this to measure the effectiveness of internal control.

Thus my keen interest has grown on measuring the effectiveness of internal control of organizations over the years which brings me here writing a report on the very subject regarding Otto Spinning Ltd. in which I was involved as a member of the audit conducting team."