Internal Control (B1:M1)

Question 1

components of IC. CRIME

Answer 1

control environment

risk assessment

information and communication

monitoring

existing control activities

Question 2

what are the principles of control environment? EBOCA

Answer 2

Ethics and integrity. tone at top

Board independence and oversight

Organizational structure

Commitment to competence. hire, develop, retain competent employees

Accountability. establishing performance measures, incentives, and rewards

Question 3

what are the principles of risk assessment? SAFR

Answer 3

Specify objectives

Risks (identify and analyze)

Fraud potential

Assess changes. changing external environment, business model, leadership

Question 4

what are the principles of information and communication? OIE

Answer 4

Obtain and use info

Internal communication

External communication

Question 5

what are the principles of monitoring? SOD

Answer 5

Separate and Ongoing evaluations. separate = periodically; ongoing = continuous

communicate Deficiencies

Question 6

what are the principles of existing control activities? CAT P

Answer 6

Control Activities (select and develop)

Technology controls (select and develop)

Policies deployment. procedures deploy the policies

Question 7

what are the “general requirements”?

Answer 7

to be effective, IC must be both present (design) and functioning (operating effectively)