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Flashcards in Audits Deck (10):
1

Segregation of job duties falls under what audit component?

Internal control system

2

What is the purpose of segregating job duties?

To minimize the opportunity for a single employee to control an end to end process, thereby minimizing risk of fraud or embezzlement

3

Balancing and reconciliation is a component of

Internal controls

4

What does SAS 70 stand for?

Statement of accounting standards #70

5

What is SAS 70 used to comply with?

SOX

6

SAS 70 has been replaced by what ?

SSAE 16

7

SSAE 16 is also referred to as

SOC 1 audit report

8

What is the purpose of SSAE 16/ SOC 1?

To help comply with SOC requirements, to show effective internal controls covering financial reporting

9

What is a phantom employee?

A fraudulently created individual whom accesses the payroll system for the purpose of creating a paycheck that can be claimed and cashed by a 3rd party

10

A commercial agreement negotiated between management (on behalf of the company) and trade unions (employees) is known as

Collective bargaining agreement