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13 Cards in this Set
- Front
- Back
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According to the UK Turnbull report system of internal control should: |
1. Be embedded within operations. 2. Be able to respond to changing risks. 3. Include procedures for reporting failings or weaknesses |
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COSO stated that effective internal control systems should consist of: |
1. Control environment 2. Risk assessment 3. Control activities 4. Information and communication 5. Monitoring |
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What does spam in the term spamsoap stand for? |
Segregation of duties Physical controls Authorisation and approval Management control |
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What does the term soap in spam soap stand for? |
Supervision Organisational structure Arithmetics and accounting Personal controls |
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What are the prerequisites for fraud? |
Dishonesty opportunity and motive |
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What are the steps in dealing with fraud? |
1. Fraud prevention 2. Fraud detection 3. Fraud response |
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In the audit process, what are the steps in planning the audit? |
1. agree the objectives of the audit. 2. plan the audit 3. Find out about Systems and Control 4. Confirm the operations of the system. 5. Assess if controls are inadequate |
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In the Audit process, what are the steps in testing? |
1. Test compliance with controls 2. test application of controls 3. review, report and recommend |
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Types of audit testing in what they are. |
1. Compliance testing: test of controls 2. substantive test: test of balances or transactions 3. analytical review: examination of ratios trends changed and balances. |
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What are the steps in COSO 2003 ERM Framework |
1. Internal environment 2. Objective setting 3. Event identification 4. Risk assessment 5. risk response 6. control activities 7. Information and communication 8. monitoring |
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What is ERM? |
1. Process affected by board directors, managers, and other personnels. 2. Identify potential events that may affect the Entity. 3. manage risk to be within its risk appetite 4. provide Assurance regarding achievement of entity objective. |
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What are COSO ERM 2017 components |
1. Governance and Culture 2. strategy and objective setting 3. performance 4. review and revision 5. Information, communication and reporting |
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What are the steps in CIMA's risk management cycle? |
1. Identify risk areas 2. understanding and assess scale of risk 3. Development of risk response strategy 4. implement strategy and allocate responsibilities 5. Implementation and monitoring of controls 6. review and refine process and do it again. |
