| LO 5-1 | Define and describe internal control and explain the limitations of all internal control systems. |
| LO 5-2 | Distinguish between the responsibilities of management and auditors regarding an entity's internal control. |
| LO 5-3 | Define and describe the five basic components of internal control and specify some of their characteristics. |
| LO 5-4 | Explain the process the audit team uses to assess control risk, understand its impact on the risk of material misstatement, and, ultimately, to know how it affects the nature, timing, and extent of further audit procedures to be performed on the audit. |
| LO 5-5 | Describe additional responsibilities for management and auditors of public companies required by Sarbanes-Oxley and Auditing Standard No. 5. |
| LO 5-6 | List the major components of the auditors' report on internal control over financial reporting. |
| LO 5-7 | Describe situations in which the auditors' report on internal control over financial reporting would be modified. |
| LO 5-8 | Explain the communication of internal control deficiencies to those charged with governance such as the audit committee and other key management personnel. |
