MGT 209- CHAPTER 6

36問 • 2年前

問題一覧

He said that "what we do to ensure that the things we want to happen will happen and the things that we don't want to happen won't happen"

LAYMAN

It is Layman's term for "what we do to ensure that the things we want to happen will happen and the things that we don't want to happen won't happen"

INTERNAL CONTROL

It is a process not an isolated procedure. It is a comprised of an interrelated sets of policies, procedures and activities that work togther for the achievement of business objectives.

INTERNAL CONTROL

When was COSO published the original internal control framework?

1992

When does the COSO Internal control framework was revised to reflect changes in the business, operating, regulatory and economic environment?

2013

AICPA stands for

AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS

AAA stands for

AMERICAN ACCOUNTING ASSOCIATION

IMA stands for

INSTITUTE OF MANAGEMENT ACCOUNTANTS

IIA stands for

INSTITUTE OF INTERNAL AUDITORS

FEI stands for

FINANCIAL EXECUTIVES INTERNATIONAL

Managers and employees have effectively carried out operations when revenue and operating cash flow targets are achieved. Efficient operations on the otehr hand, is achieved when the company is able to minimize operating costs and avoid operational inefficiencies

EFFECTIVE AND EFFICIENT OPERATIONS

It is a process consisting of policies and control procedures to assess financial statement risk and provide reasonable assurance that a company prepares reliable financial statements.

INTERNAL CONTROLS OVER FINANCIAL REPORTING (ICFR)

An accounting staff reviews and reconciles cash, A/R inventory and other accounts. If there are any discrepancies, it should he corrected on a timely basi. A person who conduct bank reconciliation should not have an access to cash. Inventory must be performed periodically in order to determine shortage or possible inventory pillferage.

RELIABILITY OF FINANCIAL AND NON-FINANCIAL REPORTING

What are the 3 pillars of ESG?

ENVIRONMENTAL, SOCIAL AND GOVERNANCE

To enhance the adherence to laws and regulations a complince form must be established within the company.

COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS

The compliance department is usually headed by a _____.

CHIEF COMPLIANCE OFFICER

What are the component of internal control?

CONTROL ENVIRONMENT, RISK ASSESSMENT, CONTROL ACTIVITIES, INFORMATION AND COMMUNICATION AND MONITORING ACTIVITIES

It is a set of standards, processes, and structures that provide the basis for carrying out internal control. Without this, internal control will not function properly.

CONTROL ENVIRONMENT

It is an iterative process of identifying and assessing of those risks that may prevent the achievement of enterprise objectives

RISK ASSESSMENT

These are the specific actions established through policies and procedures that help ensure that management's directives to mitigate risks to the achievement of objectives are carried out.

CONTROL ACTIVITIES

4 types of control activities in Internal control

AUTOMATED, MANUAL, PREVENTIVE AND DETECTIVE

The comparison of actual performance against budgets and forecasts.

PERFORMANCE REVIEWS

Control that check accuracy, completeness and authorization of transactions.

INFORMATION PROCESSING

Activities that assure the physical security of assets and records

PHYSICAL CONTROLS

Seperation of the functions of transaction authorization, record-keeping and custody

SEGREGATION OF DUTIES

It is necessary for the entity to carry out internal control responsibilities to support achievement on its objectives

INFORMATION

Management obtains, generates and uses relevant and quality information from both internal and external sources to support the functioning of internal control

INFORMATION AND COMMUNICATION

It is the continual, iterative process of providing, sharing and obtaining necessary information.

COMMUNICATION

Information is disseminated throughout the organization, flowing up, down and across the entity

INTERNAL COMMUNICATION

It enables inbound communication of relevant external information and provides information to external parties in response to requirements and expectations

EXTERNAL COMMUNICATION

It is essential because internal control that is effective today may no longer be effective months or a year from now.

MONITORING ACTIVITIES

What are the 2 types of Monitoring activities?

ONGOING MONITORING AND SEPARATE EVALUATIONS

TRUE OR FALSE. Present means the five components exist in the design and implementation of the system of internal control to achieve business objectives. Meanwhile, functioning means that the components continue to exist andare being implemented over time.

TRUE

TRUE OR FALSE. Each of the five components must not be present and functioning.

FALSE

TRUE OR FALSE. The five components must operate individually.

FALSE

Limitation of internal control includes;

POSSIBILITY OF COLLUSION, MANAGEMENT OVERRIDE, HUMAN FACTORS, COST-BENEFIT CONSIDERATION

VITMOLOGY-PPT2

Anndrea S. Galupo · 22問 · 1年前

VITMOLOGY-PPT2