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11 Cards in this Set

  • Front
  • Back
What should the risk management strategy of an organisation should encapsulate?

The risk profile of the organisation, i.e., the level of risk it finds acceptable

The risk assessment and evaluation processes the organisation practices

Effective risk management requires what?

Management commitment,

Integration with the strategic planning process, Acceptance of risk management as a continuous process

Organisation-wide ownership.

Risk management process comprises of three areas?

Risk assessment analyses and evaluates risk through processes of identification, description and estimation.

Risk reporting is concerned with regular reports in relation to risk.

Risk treatment is the process of selecting and implementing measures to modify risk.

A risk management framework needs to be established, reflecting the policy and guidelines for the organisation. Particular roles should be established and responsibilities should be assigned to?

The Board, or its audit committee

A risk management group

The chief risk officer

Internal audit

External audit

Line managers

All employees

Establishing a strategy for staff fraud involves:

Risk profile

Risk assessment

Risk treatment

Assigning responsibility

Reporting and monitoring

What three things should a good internal control system produce?

Effective and efficient operation

Internal financial control

Compliance with laws and regulations

An internal control system includes

all the policies and procedures adopted by the directors and management of an entity to assist in achieving their objectives of ensuring, the orderly and efficient conduct of a business.

This includes adherence to internal policies, the safeguarding of assets, the prevention and detection of fraud and error, the accuracy and completeness of the accounting records and the timely preparation of reliable financial information.

It comprises the control environment and control procedures.

Control environment is ?
The overall attitude, awareness and actions of directors and management regarding internal controls and their importance to the entity. It encompasses the management style, and corporate culture and values shared by all employees. It provides a background against which the various other controls are operated
Control procedures are?
Those policies and procedures in addition to the control environment which are established to achieve the entity's specific objectives.
Some different types of control are?


Segregation of duties


Authorisation and approval

Arithmetical and accounting


Supervision and management

There are four types of control objective: