Risk Assessment And Internal Controls

Front 1

What is risk

Back 1

With are things that might prevent or orgs from meeting an objective.
The possibility that org will have lower than anticipated profits or it will have a loss rather than profit

Front 2

Risk Assessment

Back 2

Determination of quantitative or qualitative value of risk related to concrete situation and recognized threat.

Front 3

Goal of risk assessment

Back 3

Identification measurement and prioritization of likely relevant events or risk that may have a material consequence on org ability to achieve its objective

Front 4

Why do risk assessment

Back 4

Increased government scrutiny proactive versus reactive
identify and prioritize risk
allocate resources
implement corrective action plan reduced compliance violation decreased potential fines &expenses
meet federal sentencing guidelines

Front 5

Universal business risk

Back 5

Erroneous record or information unacceptable accounting principles government criticism
legal action
high cost
unrealized or lost revenue
loss of destruction of assets
public disatisfaction
Fraud
conflict of interest
inappropriate management policy or decision making

Front 6

Types of internal controls

Back 6

-Preventive something you do to prevent sometime example password -Detective a control to look and see if something occurred
-Directive policies and procedures training education direct how to do it

Front 7

Benefits of conducting control self assessment CSA

Back 7

Increase scope
target audit work
frees internal audit resources increases awareness
motivates personnel