17 Principles of Internal Controls Flashcards

1
Q

Define inbound communications.

A

Communications outsiders to the organization, including customers, suppliers, external auditors, regulators, financial analysts and others.

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2
Q

Define risk assessment materiality.

A

The determination of how large of a risk poses a threat to objectives.

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3
Q

Define organizational policies.

A

The organization’s control activities that establish stakeholder expectations regarding conduct and operations.

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4
Q

Define risk assessment precision.

A

Whether, and the extent to which, risk can be quantified.

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5
Q

Define accountability in the context of designing internal control.

A

Holding individuals accountable for their internal control responsibilities.

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6
Q

Define competence in the context of designing internal control.

A

A commitment to attract, develop, and retain competent individuals consistent with achieving organizational objectives.

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