P3 - 6. Control and Information Systems Flashcards
What is the control environment?
Management’s attitude and philosophy regarding control
What are the 6 main types of control procedure?
- Organisation structure and autonomy
- Authorisation
- Supervision
- Physical
- Segregation of duties
- Arithmetical and accounting
What are the 2 categories of control activity?
- Preventative
- Detective
What is fraud?
Deliberate deception, usually for personal gain
What are the 4 main types of fraud?
- Ghost employees
- Inflated expense claims
- Collusion with external parties
- Teeming and lading
What are the 4 main internal controls that take account of the risk of fraud?
- Fraud policy statements
- Recruitment procedures
- Employee training/ being alert
- Whistleblowing
What are the 4 main considerations in a fraud response plan?
- Who will lead the investigation
- The investigation method
- How to deal with suspects
- Systems to be implemented to reduce in future
What are the 3 categories of Information strategies?
- Information Systems strategy (long term plan, what information and how to acquire)
- Information Technology (what systems, software and hardware)
- Information Management (storage and provision to users)
What are the 4 main costs of information?
- Direct capture costs
- Processing costs
- Indirect costs (incl loss of other opportunities)
- Cost of time spent analysing
What are the 4 systems controls that can be implemented at development/implementation stage?
- Planning/feasibility study
- Systems design
- Systems development, testing and training
- Maintenance
What are 5 general IS controls?
- Passwords
- Multi-factor authentication
- Personnel controls
- Contingency and backup
- Virus protection
What are 3 application controls that can be implemented within systems?
- Data verification for mandatory fields
- Data validation e.g. credit card details
- Exception reports
What are 5 key elements of a disaster recovery plan?
- Responsibilities
- Priorities
- Back-up and standby arrangements
- Recovery procedures
- Communications and PR
What are the 4 things that can be gained through big data analysis?
- Competitive advantage
- Opportunities for cost decrease or revenue increase
- Better picture of customers
- Better picture of competitors
What are the 4 challenges with Big Data?
- Breaking down data silos in an organisation
- Platforms for the unstructured data
- Determining which data is relevant
- Security and data protection
