Flashcards in Corporate Governance Deck (11):
Process of identifying, analyzing, and managing risks
The Foundation of any system of internal control.
- organizational structure
- mgmts philosophy towards controls
- system of authority and responsibility
-policies and procedures
Ensures ongoing reliability of info and control processes by monitoring and testing the control system
the policies and procedures that ensure that actions are taken to address the risks related to the achievement of mgmts objectives.
The routine controls over business processes/transactions
Info and communications
Enables an org's personnel to identify, process, and exchange the info needed to manage and control operations.
what are types of controls under control activities
the amount of risk exposure that an org chooses to accept or retain, as opposed to sharing, avoiding, reducing or eliminating the risk
Enterprise Risk Mgmt
the methods and processes used by orgs to identify and manage the events and circumstances that influence the orgs ability to achieve its objectives
what four activities should be segregated
Reconciling, oversight, and auditing
What are 3 things the CFO and CEO must certify
-that they've reviewed the 10K and 10Qs
-the reports do not contain any material falsehoods or half-truths
-the financial info is fairly presented.