control environment vs actvity Flashcards
control environment
ton at the top, (EBOCA), ethical value, org structure, bod, HR,
control activity
Monthly bank rec/with supervisor’s sign off
Entity risk assessment
Management risk that effect entity objective, ORC(operating, reporing, complinace)
Auditor is concern with internal control that provide readable assurance about entity’s ability to process and summarize finical data.
fairly presentation of the finical reporting.
information comm info system
auditor assess, class of transitions in the issuer that are significant to the F/S.
control actives
policy and procedure that help management directive carried out
- The IC system is necessary for the achievement of the operating, reporting and compliance objectives.
- ICs should be designed in alignment with the business structure of the company and be efficient and effective.
- ICs need to be monitored. They need to be present and functioning.
- 5 components of the IC framework.
safe (risk)
sod(mentoring)
conrtol envioerent(EBoca)
control activity(cat-p)
info/comm (oie)
Control Environment
- Control Environment
a. Commitment to Ethics and Integrity
b. Board Independence and Oversight
c. Organizational Structure
d. Commitment to Competence
e. Accountability
- Risk Assessment
a. Specify Objectives
b. Identify and Analyze Risks
c. Consider potential for Fraud
d. Identify and Assess Changes
- Information and Communication
- Information and Communication
a. Obtain and Use Information
b. Internally Communicate Information
c. Communicate with External Parties
- Monitoring Activities
a. Ongoing and or Separate Evaluations
b. Communication of Deficiencies
Existing Control Activities
a. Select and Develop Control Activities
b. Select and Develop Technology Controls
c. Deployment of Policies and Procedures
