Control, Security & Audit

Question 1

2 elements in Internal Control System

Answer 1

a) Control environment
b) Control procedures

Question 2

5 Control Procedures

Answer 2

1. Administration - achieving objectives, implement policies, channels of communication
2. Accounting - provide accurate accounting records, achieve accountability
3. Prevent - prevent error from happening
4. Detect - detect error once happened, etc : reconciliations
5. Correct - minimise/negate effect of error , etc : back-up of computer input at the end of the day

Question 3

Framework for effective Financial control procedures [SPAMSOAP]

Answer 3

• Segregation of duties
• Physical
• Authorisation & approval
• Management
• Supervision
• Organisation
• Arithmetical & accounting
• Personnel

Question 4

Internal check

Answer 4

Scrutiny of day-to-day transactions whereby work of one person is proved independently/complementary to work of another

Question 5

2 key features of internal audit

Answer 5

• Independence
• Appraisal