AUD 3 Internal Control 7 Flashcards
1
Q
Elements of Internal Control: (CRIME)
- Control Environment (CHOPPER)
- Risk Assessment
- Control Activities
- Information and Communication
- Monitoring
or
5 components of internal control
(CRIME)
- Control activities
- Risk assessment
- Information and communication
- Monitoring
- Control Environment
A
Elements of Internal Control: (CRIME)
- Control Environment (CHOPPER)
- Risk Assessment
- Control Activities
- Information and Communication
- Monitoring
or
5 components of internal control
(CRIME)
- Control activities
- Risk assessment
- Information and communication
- Monitoring
- Control Environment
2
Q
Elements of Internal Control: (CRIME)
• C = Control Activities
Co_____ activities are policies and procedures that help ensure that management directives are carried out.
A
Elements of Internal Control: (CRIME)
• C = Control Activities
Control activities are policies and procedures that help ensure that management directives are carried out.
3
Q
Elements of Internal Control: (CRIME)
• C = Control Activities
Control activities are po___ies and procedures that help ensure that management directives are carried out.
A
Elements of Internal Control: (CRIME)
• C = Control Activities
Control activities are policies and procedures that help ensure that management directives are carried out.
4
Q
Elements of Internal Control: (CRIME)
• C = Control Activities
Control activities are policies and pro_____es that help ensure that management directives are carried out.
A
Elements of Internal Control: (CRIME)
• C = Control Activities
Control activities are policies and procedures that help ensure that management directives are carried out.
5
Q
Elements of Internal Control: (CRIME)
• C = Control Activities
Control activities are policies and procedures that help ensure that m__________ directives are carried out.
A
Elements of Internal Control: (CRIME)
• C = Control Activities
Control activities are policies and procedures that help ensure that management directives are carried out.
6
Q
Elements of Internal Control: (CRIME)
• C = Control Activities
Control ac____ies are policies and procedures that help ensure that management directives are carried out.
A
Elements of Internal Control: (CRIME)
• C = Control Activities
Control activities are policies and procedures that help ensure that management directives are carried out.
7
Q
Elements of Internal Control: (CRIME)
• C = Control Activities
Control activities are policies and procedures that help ensure that management di____ives are carried out.
A
Elements of Internal Control: (CRIME)
• C = Control Activities
Control activities are policies and procedures that help ensure that management directives are carried out.
8
Q
Elements of Internal Control: (CRIME)
• C = Control Activities
Control activities are policies and procedures that help ensure that management directives are carried out.
The focus of co_____ activities may be one of the following:
- Performance reviews
- Information processing
- Physical controls
- Segregation of duties
A
Elements of Internal Control: (CRIME)
• C = Control Activities
Control activities are policies and procedures that help ensure that management directives are carried out.
The focus of control activities may be one of the following:
- Performance reviews
- Information processing
- Physical controls
- Segregation of duties
9
Q
Elements of Internal Control: (CRIME)
• C = Control Activities
The focus of control activities may be one of the following:
• Performance re___s
A
Elements of Internal Control: (CRIME)
• C = Control Activities
The focus of control activities may be one of the following:
• Performance reviews
10
Q
Elements of Internal Control: (CRIME)
• C = Control Activities
The focus of control activities may be one of the following:
• Perf_______ reviews
A
Elements of Internal Control: (CRIME)
• C = Control Activities
The focus of control activities may be one of the following:
- Performance reviews
- Information processing
- Physical controls
- Segregation of duties
11
Q
Elements of Internal Control: (CRIME)
• C = Control Activities
The focus of control activities may be one of the following:
• Inf_______ processing
A
Elements of Internal Control: (CRIME)
• C = Control Activities
The focus of control activities may be one of the following:
• Information processing
12
Q
Elements of Internal Control: (CRIME)
• C = Control Activities
The focus of control activities may be one of the following:
• Information pro____ing
A
Elements of Internal Control: (CRIME)
• C = Control Activities
The focus of control activities may be one of the following:
• Information processing
13
Q
Elements of Internal Control: (CRIME)
• C = Control Activities
The focus of control activities may be one of the following:
• Physical co______s
A
Elements of Internal Control: (CRIME)
• C = Control Activities
The focus of control activities may be one of the following:
• Physical controls
14
Q
Elements of Internal Control: (CRIME)
• C = Control Activities
The focus of control activities may be one of the following:
• Ph______ controls
A
Elements of Internal Control: (CRIME)
• C = Control Activities
The focus of control activities may be one of the following:
• Physical controls
15
Q
Elements of Internal Control: (CRIME)
• C = Control Activities
The focus of control activities may be one of the following:
• Seg_________ of duties
A
Elements of Internal Control: (CRIME)
• C = Control Activities
The focus of control activities may be one of the following:
• Segregation of duties
16
Q
Elements of Internal Control: (CRIME)
• C = Control Activities
The focus of control activities may be one of the following:
• Segregation of d__ies
A
Elements of Internal Control: (CRIME)
• C = Control Activities
The focus of control activities may be one of the following:
• Segregation of duties
17
Q
Elements of Internal Control: (CRIME)
• C = Control Activities
The fo___ of control activities may be one of the following:
- Performance reviews
- Information processing
- Physical controls
- Segregation of duties
A
Elements of Internal Control: (CRIME)
• C = Control Activities
The focus of control activities may be one of the following:
- Performance reviews
- Information processing
- Physical controls
- Segregation of duties
18
Q
Elements of Internal Control: (CRIME)
• C = Control Activities
Control activities are policies and procedures that help ensure that management directives are carried out.
The focus of control activities may be one of the following:
- Per________ reviews
- Information processing
- Physical controls
- Segregation of duties
A
Elements of Internal Control: (CRIME)
• C = Control Activities
Control activities are policies and procedures that help ensure that management directives are carried out.
The focus of control activities may be one of the following:
- Performance reviews
- Information processing
- Physical controls
- Segregation of duties
19
Q
Elements of Internal Control: (CRIME)
• C = Control Activities
Control activities are policies and procedures that help ensure that management directives are carried out.
The focus of control activities may be one of the following:
- Performance reviews
- In_________ processing
- Physical controls
- Segregation of duties
A
Elements of Internal Control: (CRIME)
• C = Control Activities
Control activities are policies and procedures that help ensure that management directives are carried out.
The focus of control activities may be one of the following:
- Performance reviews
- Information processing
- Physical controls
- Segregation of duties
20
Q
Elements of Internal Control: (CRIME)
• C = Control Activities
Control activities are policies and procedures that help ensure that management directives are carried out.
The focus of control activities may be one of the following:
- Performance reviews
- Information processing
- Ph_______ controls
- Segregation of duties
A
Elements of Internal Control: (CRIME)
• C = Control Activities
Control activities are policies and procedures that help ensure that management directives are carried out.
The focus of control activities may be one of the following:
- Performance reviews
- Information processing
- Physical controls
- Segregation of duties
21
Q
Elements of Internal Control: (CRIME)
• C = Control Activities
Control activities are policies and procedures that help ensure that management directives are carried out.
The focus of control activities may be one of the following:
- Performance reviews
- Information processing
- Physical controls
- Seg_______ of duties
A
Elements of Internal Control: (CRIME)
• C = Control Activities
Control activities are policies and procedures that help ensure that management directives are carried out.
The focus of control activities may be one of the following:
- Performance reviews
- Information processing
- Physical controls
- Segregation of duties
22
Q
Elements of Internal Control: (CRIME)
• C = Control Activities
Control activities are policies and procedures that help ensure that management directives are carried out.
The focus of control activities may be one of the following:
- Performance re____s
- Information pro____ing
- Physical co____s
- Segregation of du___s
A
Elements of Internal Control: (CRIME)
• C = Control Activities
Control activities are policies and procedures that help ensure that management directives are carried out.
The focus of control activities may be one of the following:
- Performance reviews
- Information processing
- Physical controls
- Segregation of duties
23
Q
Elements of Internal Control: (CRIME)
• C = Control Activities
Control activities are policies and procedures that help ensure that management directives are carried out.
The focus of control activities may be o__ of the following:
- Performance reviews
- Information processing
- Physical controls
- Segregation of duties
A
Elements of Internal Control: (CRIME)
• C = Control Activities
Control activities are policies and procedures that help ensure that management directives are carried out.
The focus of control activities may be one of the following:
- Performance reviews
- Information processing
- Physical controls
- Segregation of duties
24
Q
Elements of Internal Control: (CRIME)
• C = Control Activities
Performance reviews
– Controls involving the evaluation of perf________ against some criteria
A
Elements of Internal Control: (CRIME)
• C = Control Activities
Performance reviews
– Controls involving the evaluation of performance against some criteria
25
Elements of Internal Control: (CRIME)
• C = Control Activities
Performance reviews
– Controls involving the eva______ of performance against some criteria
Elements of Internal Control: (CRIME)
• C = Control Activities
Performance reviews
– Controls involving the evaluation of performance against some criteria
26
Elements of Internal Control: (CRIME)
• C = Control Activities
Performance reviews
– Controls involving the evaluation of performance against some cri_____
Elements of Internal Control: (CRIME)
• C = Control Activities
Performance reviews
– Controls involving the evaluation of performance against some criteria
27
Elements of Internal Control: (CRIME)
• C = Control Activities
Performance reviews
– Controls involving the evaluation of performance against some criteria
such as
comparing act___ amounts to budgeted amounts,
Elements of Internal Control: (CRIME)
• C = Control Activities
Performance reviews
– Controls involving the evaluation of performance against some criteria
such as
comparing actual amounts to budgeted amounts,
28
Elements of Internal Control: (CRIME)
• C = Control Activities
Performance reviews
– Controls involving the evaluation of performance against some criteria
such as
comparing actual amounts to bud___ed amounts,
Elements of Internal Control: (CRIME)
• C = Control Activities
Performance reviews
– Controls involving the evaluation of performance against some criteria
such as
comparing actual amounts to budgeted amounts,
29
Elements of Internal Control: (CRIME)
• C = Control Activities
Performance reviews
– Controls involving the evaluation of performance against some criteria
such as
comparing actual amounts to budgeted amounts,
comparing cur_____ period results to those of prior years,
Elements of Internal Control: (CRIME)
• C = Control Activities
Performance reviews
– Controls involving the evaluation of performance against some criteria
such as
comparing actual amounts to budgeted amounts,
comparing current period results to those of prior years,
30
Elements of Internal Control: (CRIME)
• C = Control Activities
Performance reviews
– Controls involving the evaluation of performance against some criteria
such as
comparing actual amounts to budgeted amounts,
comparing current period results to those of pr___ years,
Elements of Internal Control: (CRIME)
• C = Control Activities
Performance reviews
– Controls involving the evaluation of performance against some criteria
such as
comparing actual amounts to budgeted amounts,
comparing current period results to those of prior years,
31
Elements of Internal Control: (CRIME)
• C = Control Activities
Performance reviews
– Controls involving the evaluation of performance against some criteria
such as
comparing actual amounts to budgeted amounts,
comparing current period results to those of prior years,
or eva____ing financial data in relation to non financial data.
Elements of Internal Control: (CRIME)
• C = Control Activities
Performance reviews
– Controls involving the evaluation of performance against some criteria
such as
comparing actual amounts to budgeted amounts,
comparing current period results to those of prior years,
or evaluating financial data in relation to non financial data.
32
Elements of Internal Control: (CRIME)
• C = Control Activities
Performance reviews
– Controls involving the evaluation of performance against some criteria
such as
comparing actual amounts to budgeted amounts,
comparing current period results to those of prior years,
or evaluating fi_______ data in relation to non financial data.
Elements of Internal Control: (CRIME)
• C = Control Activities
Performance reviews
– Controls involving the evaluation of performance against some criteria
such as
comparing actual amounts to budgeted amounts,
comparing current period results to those of prior years,
or evaluating financial data in relation to non financial data.
33
Elements of Internal Control: (CRIME)
• C = Control Activities
Performance reviews
– Controls involving the evaluation of performance against some criteria
such as
comparing actual amounts to budgeted amounts,
comparing current period results to those of prior years,
or evaluating financial data in relation to non financial d___.
Elements of Internal Control: (CRIME)
• C = Control Activities
Performance reviews
– Controls involving the evaluation of performance against some criteria
such as
comparing actual amounts to budgeted amounts,
comparing current period results to those of prior years,
or evaluating financial data in relation to non financial data.
34
Elements of Internal Control: (CRIME)
• C = Control Activities
Performance reviews
– Controls involving the evaluation of performance against some criteria
such as
comparing actual amounts to budgeted amounts,
comparing current period results to those of prior years,
or evaluating financial data in relation to n__ financial data.
Elements of Internal Control: (CRIME)
• C = Control Activities
Performance reviews
– Controls involving the evaluation of performance against some criteria
such as
comparing actual amounts to budgeted amounts,
comparing current period results to those of prior years,
or evaluating financial data in relation to non financial data.
35
Elements of Internal Control: (CRIME)
• C = Control Activities
Performance re____s
– Controls involving the evaluation of performance against some criteria such as comparing actual amounts to budgeted amounts, comparing current period results to those of prior years, or evaluating financial data in relation to nonfinancial data.
Elements of Internal Control: (CRIME)
• C = Control Activities
Performance reviews
– Controls involving the evaluation of performance against some criteria such as comparing actual amounts to budgeted amounts, comparing current period results to those of prior years, or evaluating financial data in relation to nonfinancial data.
36
Elements of Internal Control: (CRIME)
• C = Control Activities
Information processing
– Controls that prevent the processing of inf_______ unless certain criteria are met,
Elements of Internal Control: (CRIME)
• C = Control Activities
Information processing
– Controls that prevent the processing of information unless certain criteria are met,
37
Elements of Internal Control: (CRIME)
• C = Control Activities
Information processing
– Controls that pre____ the processing of information unless certain criteria are met,
Elements of Internal Control: (CRIME)
• C = Control Activities
Information processing
– Controls that prevent the processing of information unless certain criteria are met,
38
Elements of Internal Control: (CRIME)
• C = Control Activities
Information processing
– Controls that prevent the pro____ing of information unless certain criteria are met,
Elements of Internal Control: (CRIME)
• C = Control Activities
Information processing
– Controls that prevent the processing of information unless certain criteria are met,
39
Elements of Internal Control: (CRIME)
• C = Control Activities
Information processing
– Controls that prevent the processing of information unless certain cri___ia are met,
Elements of Internal Control: (CRIME)
• C = Control Activities
Information processing
– Controls that prevent the processing of information unless certain criteria are met,
40
Elements of Internal Control: (CRIME)
• C = Control Activities
Information processing
– Controls that prevent the processing of information un___s certain criteria are met,
Elements of Internal Control: (CRIME)
• C = Control Activities
Information processing
– Controls that prevent the processing of information unless certain criteria are met,
41
Elements of Internal Control: (CRIME)
• C = Control Activities
Information processing
– Controls that prevent the processing of information unless certain criteria are met,
such as the matching of certain doc_______ before recording a sale.
Elements of Internal Control: (CRIME)
• C = Control Activities
Information processing
– Controls that prevent the processing of information unless certain criteria are met,
such as the matching of certain documentation before recording a sale.
42
Elements of Internal Control: (CRIME)
• C = Control Activities
Information processing
– Controls that prevent the processing of information unless certain criteria are met,
such as the m____ing of certain documentation before recording a sale.
Elements of Internal Control: (CRIME)
• C = Control Activities
Information processing
– Controls that prevent the processing of information unless certain criteria are met,
such as the matching of certain documentation before recording a sale.
43
Elements of Internal Control: (CRIME)
• C = Control Activities
Information processing
– Controls that prevent the processing of information unless certain criteria are met,
such as the matching of certain documentation before re____ing a sale.
Elements of Internal Control: (CRIME)
• C = Control Activities
Information processing
– Controls that prevent the processing of information unless certain criteria are met,
such as the matching of certain documentation before recording a sale.
44
Elements of Internal Control: (CRIME)
• C = Control Activities
Information processing
– Controls that prevent the processing of information unless certain criteria are met,
such as the matching of certain documentation before recording a s___.
Elements of Internal Control: (CRIME)
• C = Control Activities
Information processing
– Controls that prevent the processing of information unless certain criteria are met,
such as the matching of certain documentation before recording a sale.
45
Elements of Internal Control: (CRIME)
• C = Control Activities
Information processing
– Controls that prevent the processing of information unless certain criteria are met,
such as the matching of certain documentation before recording a sale.
In an information technology, or IT, env_______,
there are general controls that relate to the overall operation of the system,
Elements of Internal Control: (CRIME)
• C = Control Activities
Information processing
– Controls that prevent the processing of information unless certain criteria are met,
such as the matching of certain documentation before recording a sale.
In an information technology, or IT, environment,
there are general controls that relate to the overall operation of the system,
including the structure of the organization and access to information;
and application controls that relate to specific functions being performed.
46
Elements of Internal Control: (CRIME)
• C = Control Activities
Information processing
– Controls that prevent the processing of information unless certain criteria are met,
such as the matching of certain documentation before recording a sale.
In an information tech________, or IT, environment,
there are general controls that relate to the overall operation of the system,
Elements of Internal Control: (CRIME)
• C = Control Activities
Information processing
– Controls that prevent the processing of information unless certain criteria are met,
such as the matching of certain documentation before recording a sale.
In an information technology, or IT, environment,
there are general controls that relate to the overall operation of the system,
47
Elements of Internal Control: (CRIME)
• C = Control Activities
Information processing
– Controls that prevent the processing of information unless certain criteria are met,
such as the matching of certain documentation before recording a sale.
In an information technology, or IT, environment,
there are general controls that relate to the overall ope_____ of the system,
Elements of Internal Control: (CRIME)
• C = Control Activities
Information processing
– Controls that prevent the processing of information unless certain criteria are met,
such as the matching of certain documentation before recording a sale.
In an information technology, or IT, environment,
there are general controls that relate to the overall operation of the system,
48
Elements of Internal Control: (CRIME)
• C = Control Activities
Information processing
– Controls that prevent the processing of information unless certain criteria are met,
such as the matching of certain documentation before recording a sale.
In an information technology, or IT, environment,
there are gen____ controls that relate to the overall operation of the system,
Elements of Internal Control: (CRIME)
• C = Control Activities
Information processing
– Controls that prevent the processing of information unless certain criteria are met,
such as the matching of certain documentation before recording a sale.
In an information technology, or IT, environment,
there are general controls that relate to the overall operation of the system,
49
Elements of Internal Control: (CRIME)
• C = Control Activities
Information processing
– Controls that prevent the processing of information unless certain criteria are met,
such as the matching of certain documentation before recording a sale.
In an information technology, or IT, environment,
there are general controls that relate to the over___ operation of the system,
Elements of Internal Control: (CRIME)
• C = Control Activities
Information processing
– Controls that prevent the processing of information unless certain criteria are met,
such as the matching of certain documentation before recording a sale.
In an information technology, or IT, environment,
there are general controls that relate to the overall operation of the system,
50
Elements of Internal Control: (CRIME)
• C = Control Activities
Information processing
– Controls that prevent the processing of information unless certain criteria are met,
such as the matching of certain documentation before recording a sale.
In an information technology, or IT, environment,
there are general controls that relate to the overall operation of the system,
including the stru_____ of the organization and access to information;
Elements of Internal Control: (CRIME)
• C = Control Activities
Information processing
– Controls that prevent the processing of information unless certain criteria are met,
such as the matching of certain documentation before recording a sale.
In an information technology, or IT, environment,
there are general controls that relate to the overall operation of the system,
including the structure of the organization and access to information;
51
Elements of Internal Control: (CRIME)
• C = Control Activities
Information processing
– Controls that prevent the processing of information unless certain criteria are met,
such as the matching of certain documentation before recording a sale.
In an information technology, or IT, environment,
there are general controls that relate to the overall operation of the system,
including the structure of the org_______ and access to information;
Elements of Internal Control: (CRIME)
• C = Control Activities
Information processing
– Controls that prevent the processing of information unless certain criteria are met,
such as the matching of certain documentation before recording a sale.
In an information technology, or IT, environment,
there are general controls that relate to the overall operation of the system,
including the structure of the organization and access to information;
52
Elements of Internal Control: (CRIME)
• C = Control Activities
Information processing
– Controls that prevent the processing of information unless certain criteria are met,
such as the matching of certain documentation before recording a sale.
In an information technology, or IT, environment,
there are general controls that relate to the overall operation of the system,
including the structure of the organization and access to information;
and application controls that relate to specific func____s being performed.
Elements of Internal Control: (CRIME)
• C = Control Activities
Information processing
– Controls that prevent the processing of information unless certain criteria are met,
such as the matching of certain documentation before recording a sale.
In an information technology, or IT, environment,
there are general controls that relate to the overall operation of the system,
including the structure of the organization and access to information;
and application controls that relate to specific functions being performed.
53
Elements of Internal Control: (CRIME)
• C = Control Activities
Information processing
– Controls that prevent the processing of information unless certain criteria are met,
such as the matching of certain documentation before recording a sale.
In an information technology, or IT, environment,
there are general controls that relate to the overall operation of the system,
including the structure of the organization and access to information;
and appl_____ controls that relate to specific functions being performed.
Elements of Internal Control: (CRIME)
• C = Control Activities
Information processing
– Controls that prevent the processing of information unless certain criteria are met,
such as the matching of certain documentation before recording a sale.
In an information technology, or IT, environment,
there are general controls that relate to the overall operation of the system,
including the structure of the organization and access to information;
and application controls that relate to specific functions being performed.
54
Elements of Internal Control: (CRIME)
• C = Control Activities
Information processing
– Controls that prevent the processing of information unless certain criteria are met,
such as the matching of certain documentation before recording a sale.
In an information technology, or IT, environment,
there are general controls that relate to the overall operation of the system,
including the structure of the organization and access to information;
and application controls that relate to specific functions being perf___ed.
Elements of Internal Control: (CRIME)
• C = Control Activities
Information processing
– Controls that prevent the processing of information unless certain criteria are met,
such as the matching of certain documentation before recording a sale.
In an information technology, or IT, environment,
there are general controls that relate to the overall operation of the system,
including the structure of the organization and access to information;
and application controls that relate to specific functions being performed.
55
Elements of Internal Control: (CRIME)
• C = Control Activities
Information pro____ing
– Controls that prevent the processing of information unless certain criteria are met, such as the matching of certain documentation before recording a sale.
In an information technology, or IT, environment, there are general controls that relate to the overall operation of the system, including the structure of the organization and access to information; and application controls that relate to specific functions being performed.
Elements of Internal Control: (CRIME)
• C = Control Activities
Information processing
– Controls that prevent the processing of information unless certain criteria are met, such as the matching of certain documentation before recording a sale.
In an information technology, or IT, environment, there are general controls that relate to the overall operation of the system, including the structure of the organization and access to information; and application controls that relate to specific functions being performed.
56
Elements of Internal Control: (CRIME)
• C = Control Activities
Infor_______ processing
– Controls that prevent the processing of information unless certain criteria are met, such as the matching of certain documentation before recording a sale.
In an information technology, or IT, environment, there are general controls that relate to the overall operation of the system, including the structure of the organization and access to information; and application controls that relate to specific functions being performed.
Elements of Internal Control: (CRIME)
• C = Control Activities
Information processing
– Controls that prevent the processing of information unless certain criteria are met, such as the matching of certain documentation before recording a sale.
In an information technology, or IT, environment, there are general controls that relate to the overall operation of the system, including the structure of the organization and access to information; and application controls that relate to specific functions being performed.
57
Elements of Internal Control: (CRIME)
• C = Control Activities
Physical co_____s
– Controls that limit access to assets.
Elements of Internal Control: (CRIME)
• C = Control Activities
Physical controls
– Controls that limit access to assets.
58
Elements of Internal Control: (CRIME)
• C = Control Activities
Physical controls
– Controls that li___ access to assets.
Elements of Internal Control: (CRIME)
• C = Control Activities
Physical controls
– Controls that limit access to assets.
59
Elements of Internal Control: (CRIME)
• C = Control Activities
Physical controls
– Controls that limit access to as___s.
Elements of Internal Control: (CRIME)
• C = Control Activities
Physical controls
– Controls that limit access to assets.
60
Elements of Internal Control: (CRIME)
• C = Control Activities
Physical controls
– Controls that limit acc___ to assets.
Elements of Internal Control: (CRIME)
• C = Control Activities
Physical controls
– Controls that limit access to assets.
61
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of du___s
– Controls that involve assigning different people responsibilities for
authorizing transactions,
recording transactions,
maintaining custody of assets,
and performing reconciliations or comparisons.
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– Controls that involve assigning different people responsibilities for
authorizing transactions,
recording transactions,
maintaining custody of assets,
and performing reconciliations or comparisons.
62
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– Controls that involve assigning different people resp________es for
authorizing transactions,
recording transactions,
maintaining custody of assets,
and performing reconciliations or comparisons.
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– Controls that involve assigning different people responsibilities for
authorizing transactions,
recording transactions,
maintaining custody of assets,
and performing reconciliations or comparisons.
63
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– Controls that involve assigning different people responsibilities for
aut_____ing transactions,
recording transactions,
maintaining custody of assets,
and performing reconciliations or comparisons.
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– Controls that involve assigning different people responsibilities for
authorizing transactions,
recording transactions,
maintaining custody of assets,
and performing reconciliations or comparisons.
64
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– Controls that involve assigning different people responsibilities for
authorizing transactions,
re____ing transactions,
maintaining custody of assets,
and performing reconciliations or comparisons.
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– Controls that involve assigning different people responsibilities for
authorizing transactions,
recording transactions,
maintaining custody of assets,
and performing reconciliations or comparisons.
65
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– Controls that involve assigning different people responsibilities for
authorizing transactions,
recording transactions,
maintaining cus____ of assets,
and performing reconciliations or comparisons.
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– Controls that involve assigning different people responsibilities for
authorizing transactions,
recording transactions,
maintaining custody of assets,
and performing reconciliations or comparisons.
66
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– Controls that involve assigning different people responsibilities for
authorizing transactions,
recording transactions,
maintaining custody of assets,
and performing recon_______s or comparisons.
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– Controls that involve assigning different people responsibilities for
authorizing transactions,
recording transactions,
maintaining custody of assets,
and performing reconciliations or comparisons.
67
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– Controls that involve ass____ing different people responsibilities for
authorizing transactions,
recording transactions,
maintaining custody of assets,
and performing reconciliations or comparisons.
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– Controls that involve assigning different people responsibilities for
authorizing transactions,
recording transactions,
maintaining custody of assets,
and performing reconciliations or comparisons.
68
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– Controls that involve assigning different people responsibilities for
authorizing trans______s,
recording transactions,
maintaining custody of assets,
and performing reconciliations or comparisons.
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– Controls that involve assigning different people responsibilities for
authorizing transactions,
recording transactions,
maintaining custody of assets,
and performing reconciliations or comparisons.
69
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– Controls that involve assigning different people responsibilities for
authorizing transactions,
recording transactions,
main____ing custody of assets,
and performing reconciliations or comparisons.
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– Controls that involve assigning different people responsibilities for
authorizing transactions,
recording transactions,
maintaining custody of assets,
and performing reconciliations or comparisons.
70
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– Controls that involve assigning different people responsibilities for
authorizing transactions,
recording transactions,
maintaining custody of assets,
and per____ing reconciliations or comparisons.
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– Controls that involve assigning different people responsibilities for
authorizing transactions,
recording transactions,
maintaining custody of assets,
and performing reconciliations or comparisons.
71
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– Controls that involve assigning different people responsibilities for
authorizing transactions,
recording transactions,
maintaining custody of assets,
and performing reconciliations or comp_____ons.
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– Controls that involve assigning different people responsibilities for
authorizing transactions,
recording transactions,
maintaining custody of assets,
and performing reconciliations or comparisons.
72
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– Controls that involve assigning different pe_____ responsibilities for authorizing transactions, recording transactions, maintaining custody of assets, and performing reconciliations or comparisons.
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– Controls that involve assigning different people responsibilities for authorizing transactions, recording transactions, maintaining custody of assets, and performing reconciliations or comparisons.
73
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– It is intended to re____ the opportunities to allow any person to be in a position to both perpetrate and conceal errors or fraud in the normal course of their duties (ARCC-S).
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– It is intended to reduce the opportunities to allow any person to be in a position to both perpetrate and conceal errors or fraud in the normal course of their duties (ARCC-S).
74
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– It is intended to reduce the opportunities to allow any person to be in a position to both perpetrate and conceal errors or fraud in the normal course of their duties (ARCC-S).
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– It is intended to reduce the opportunities to allow any person to be in a position to both perpetrate and conceal errors or fraud in the normal course of their duties (ARCC-S).
75
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– It is intended to reduce the oppo_______s to allow any person to be in a position to both perpetrate and conceal errors or fraud in the normal course of their duties (ARCC-S).
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– It is intended to reduce the opportunities to allow any person to be in a position to both perpetrate and conceal errors or fraud in the normal course of their duties (ARCC-S).
76
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– It is intended to reduce the opportunities to allow any person to be in a position to b___ perpetrate and conceal errors or fraud in the normal course of their duties (ARCC-S).
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– It is intended to reduce the opportunities to allow any person to be in a position to both perpetrate and conceal errors or fraud in the normal course of their duties (ARCC-S).
77
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– It is intended to reduce the opportunities to allow any person to be in a position to both per______ and conceal errors or fraud in the normal course of their duties (ARCC-S).
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– It is intended to reduce the opportunities to allow any person to be in a position to both perpetrate and conceal errors or fraud in the normal course of their duties (ARCC-S).
78
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– It is intended to reduce the opportunities to allow any person to be in a position to both perpetrate and con___ errors or fraud in the normal course of their duties (ARCC-S).
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– It is intended to reduce the opportunities to allow any person to be in a position to both perpetrate and conceal errors or fraud in the normal course of their duties (ARCC-S).
79
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– It is intended to reduce the opportunities to allow any person to be in a position to both perpetrate and conceal er___s or fraud in the normal course of their duties (ARCC-S).
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– It is intended to reduce the opportunities to allow any person to be in a position to both perpetrate and conceal errors or fraud in the normal course of their duties (ARCC-S).
80
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– It is intended to reduce the opportunities to allow any person to be in a position to both perpetrate and conceal errors or f___d in the normal course of their duties (ARCC-S).
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– It is intended to reduce the opportunities to allow any person to be in a position to both perpetrate and conceal errors or fraud in the normal course of their duties (ARCC-S).
81
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– It is intended to reduce the opportunities to allow any person to be in a position to both perpetrate and conceal errors or fraud in the normal course of their d___es (ARCC-S).
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– It is intended to reduce the opportunities to allow any person to be in a position to both perpetrate and conceal errors or fraud in the normal course of their duties (ARCC-S).
82
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– It is intended to reduce the opportunities to allow any person to be in a position to both perpetrate and conceal errors or fraud in the normal course of their duties (ARCC-S).
o Authorization of trans_____s
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– It is intended to reduce the opportunities to allow any person to be in a position to both perpetrate and conceal errors or fraud in the normal course of their duties (ARCC-S).
o Authorization of transactions
83
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– It is intended to reduce the opportunities to allow any person to be in a position to both perpetrate and conceal errors or fraud in the normal course of their duties (ARCC-S).
o Auth________ of transactions
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– It is intended to reduce the opportunities to allow any person to be in a position to both perpetrate and conceal errors or fraud in the normal course of their duties (ARCC-S).
o Authorization of transactions
84
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– It is intended to reduce the opportunities to allow any person to be in a position to both perpetrate and conceal errors or fraud in the normal course of their duties (ARCC-S).
o Re____ing (posting) of transactions
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– It is intended to reduce the opportunities to allow any person to be in a position to both perpetrate and conceal errors or fraud in the normal course of their duties (ARCC-S).
o Recording (posting) of transactions
85
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– It is intended to reduce the opportunities to allow any person to be in a position to both perpetrate and conceal errors or fraud in the normal course of their duties (ARCC-S).
o Recording (p___ing) of transactions
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– It is intended to reduce the opportunities to allow any person to be in a position to both perpetrate and conceal errors or fraud in the normal course of their duties (ARCC-S).
o Recording (posting) of transactions
86
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– It is intended to reduce the opportunities to allow any person to be in a position to both perpetrate and conceal errors or fraud in the normal course of their duties (ARCC-S).
o Cus____ of assets
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– It is intended to reduce the opportunities to allow any person to be in a position to both perpetrate and conceal errors or fraud in the normal course of their duties (ARCC-S).
o Custody of assets
87
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– It is intended to reduce the opportunities to allow any person to be in a position to both perpetrate and conceal errors or fraud in the normal course of their duties (ARCC-S).
o Custody of as___s
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– It is intended to reduce the opportunities to allow any person to be in a position to both perpetrate and conceal errors or fraud in the normal course of their duties (ARCC-S).
o Custody of assets
88
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– It is intended to reduce the opportunities to allow any person to be in a position to both perpetrate and conceal errors or fraud in the normal course of their duties (ARCC-S).
o Com_______s
▪ Segregation of duties
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– It is intended to reduce the opportunities to allow any person to be in a position to both perpetrate and conceal errors or fraud in the normal course of their duties (ARCC-S).
o Comparisons
▪ Segregation of duties
89
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– It is intended to reduce the opportunities to allow any person to be in a position to both perpetrate and conceal errors or fraud in the normal course of their duties (ARCC-S).
o Comparisons
▪ Segregation of d___es
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– It is intended to reduce the opportunities to allow any person to be in a position to both perpetrate and conceal errors or fraud in the normal course of their duties (ARCC-S).
o Comparisons
▪ Segregation of duties
90
Elements of Internal Control: (CRIME)
• C = Control Activities
Segr________ of duties
– It is intended to reduce the opportunities to allow any person to be in a position to both perpetrate and conceal errors or fraud in the normal course of their duties (ARCC-S).
```
o Authorization of transactions
o Recording (posting) of transactions
o Custody of assets
o Comparisons
▪ Segregation of duties
```
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– It is intended to reduce the opportunities to allow any person to be in a position to both perpetrate and conceal errors or fraud in the normal course of their duties (ARCC-S).
```
o Authorization of transactions
o Recording (posting) of transactions
o Custody of assets
o Comparisons
▪ Segregation of duties
```
91
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– Controls that involve assigning different people responsibilities for authorizing transactions, recording transactions, maintaining custody of assets, and performing reconciliations or comparisons.
It is in____ed to reduce the opportunities to allow any person to be in a position to both perpetrate and conceal errors or fraud in the normal course of their duties (ARCC-S).
```
o Authorization of transactions
o Recording (posting) of transactions
o Custody of assets
o Comparisons
▪ Segregation of duties
```
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– Controls that involve assigning different people responsibilities for authorizing transactions, recording transactions, maintaining custody of assets, and performing reconciliations or comparisons.
It is intended to reduce the opportunities to allow any person to be in a position to both perpetrate and conceal errors or fraud in the normal course of their duties (ARCC-S).
```
o Authorization of transactions
o Recording (posting) of transactions
o Custody of assets
o Comparisons
▪ Segregation of duties
```
92
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– Controls that involve assigning different people responsibilities for authorizing transactions, recording transactions, maintaining custody of assets, and performing reconciliations or comparisons.
It is intended to reduce the opportunities to all__ any person to be in a position to both perpetrate and conceal errors or fraud in the normal course of their duties (ARCC-S).
```
o Authorization of transactions
o Recording (posting) of transactions
o Custody of assets
o Comparisons
▪ Segregation of duties
```
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
– Controls that involve assigning different people responsibilities for authorizing transactions, recording transactions, maintaining custody of assets, and performing reconciliations or comparisons.
It is intended to reduce the opportunities to allow any person to be in a position to both perpetrate and conceal errors or fraud in the normal course of their duties (ARCC-S).
```
o Authorization of transactions
o Recording (posting) of transactions
o Custody of assets
o Comparisons
▪ Segregation of duties
```
93
What is ARCC-S in Segregation of duties of Control Activities?
```
o Aut_______of transactions
o Re____ing (posting) of transactions
o C______y of assets
o Comp_____s
▪ Segregation of duties
```
Elements of Internal Control: (CRIME)
• C = Control Activities
Segregation of duties
ARCC-S
```
o Authorization of transactions
o Recording (posting) of transactions
o Custody of assets
o Comparisons
▪ Segregation of duties
```
94
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying co______ activities, the auditor will have to determine if they are relevant to the audit.
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
95
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to id_____ying control activities, the auditor will have to determine if they are relevant to the audit.
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
96
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to det______e if they are relevant to the audit.
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
97
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the a____.
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
98
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are rel_______ to the audit.
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
99
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
Some will be rel______ in the professional judgment of the auditor.
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
Some will be relevant in the professional judgment of the auditor.
100
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
Some will be relevant in the professional jud_____ of the auditor.
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
Some will be relevant in the professional judgment of the auditor.
101
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
Some will be relevant in the prof_______ judgment of the auditor.
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
Some will be relevant in the professional judgment of the auditor.
102
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
Some will be relevant in the professional judgment of the au_____.
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
Some will be relevant in the professional judgment of the auditor.
103
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
Some will be relevant in the professional judgment of the auditor.
This will be the case, for example,
when the au_____ determines that a control activity reduces the risk of material misstatement
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
Some will be relevant in the professional judgment of the auditor.
This will be the case, for example,
when the auditor determines that a control activity reduces the risk of material misstatement
104
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
Some will be relevant in the professional judgment of the auditor.
This will be the case, for example,
when the auditor determines that a control activity red___s the risk of material misstatement
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
Some will be relevant in the professional judgment of the auditor.
This will be the case, for example,
when the auditor determines that a control activity reduces the risk of material misstatement
105
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
Some will be relevant in the professional judgment of the auditor.
This will be the case, for example,
when the auditor determines that a control activity reduces the r___ of material misstatement in relation to a management assertion and:
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
Some will be relevant in the professional judgment of the auditor.
This will be the case, for example,
when the auditor determines that a control activity reduces the risk of material misstatement in relation to a management assertion and:
106
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
Some will be relevant in the professional judgment of the auditor.
This will be the case, for example,
when the auditor determines that a control activity reduces the risk of material misstatement in relation to a m__________ assertion and:
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
Some will be relevant in the professional judgment of the auditor.
This will be the case, for example,
when the auditor determines that a control activity reduces the risk of material misstatement in relation to a management assertion and:
107
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
Some will be relevant in the professional judgment of the auditor.
This will be the case, for example,
when the auditor determines that a control activity reduces the risk of material misstatement in relation to a management ass___ion and:
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
Some will be relevant in the professional judgment of the auditor.
This will be the case, for example,
when the auditor determines that a control activity reduces the risk of material misstatement in relation to a management assertion and:
108
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
Some will be relevant in the professional judgment of the auditor.
This will be the case, for example,
when the auditor determines that a control activity reduces the risk of material misstatement in relation to a management assertion and:
• The au____ has a basis for testing the control activity to determine if it was properly designed and being applied properly during the period under audit;
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
Some will be relevant in the professional judgment of the auditor.
This will be the case, for example,
when the auditor determines that a control activity reduces the risk of material misstatement in relation to a management assertion and:
• The auditor has a basis for testing the control activity to determine if it was properly designed and being applied properly during the period under audit;
109
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
This will be the case, for example,
when the auditor determines that a control activity reduces the risk of material misstatement in relation to a management assertion and:
• The auditor has a basis for t___ing the control activity to determine if it was properly designed and being applied properly during the period under audit;
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
This will be the case, for example,
when the auditor determines that a control activity reduces the risk of material misstatement in relation to a management assertion and:
• The auditor has a basis for testing the control activity to determine if it was properly designed and being applied properly during the period under audit;
110
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
This will be the case, for example,
when the auditor determines that a control activity reduces the risk of material misstatement in relation to a management assertion and:
• The auditor has a ba___ for testing the control activity to determine if it was properly designed and being applied properly during the period under audit;
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
This will be the case, for example,
when the auditor determines that a control activity reduces the risk of material misstatement in relation to a management assertion and:
• The auditor has a basis for testing the control activity to determine if it was properly designed and being applied properly during the period under audit;
111
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
This will be the case, for example,
when the auditor determines that a control activity reduces the risk of material misstatement in relation to a management assertion and:
• The auditor has a basis for testing the control ac____y to determine if it was properly designed and being applied properly during the period under audit;
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
This will be the case, for example,
when the auditor determines that a control activity reduces the risk of material misstatement in relation to a management assertion and:
• The auditor has a basis for testing the control activity to determine if it was properly designed and being applied properly during the period under audit;
112
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
This will be the case, for example,
when the auditor determines that a control activity reduces the risk of material misstatement in relation to a management assertion and:
• The auditor has a basis for testing the control activity to dete______ if it was properly designed and being applied properly during the period under audit;
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
This will be the case, for example,
when the auditor determines that a control activity reduces the risk of material misstatement in relation to a management assertion and:
• The auditor has a basis for testing the control activity to determine if it was properly designed and being applied properly during the period under audit;
113
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
This will be the case, for example,
when the auditor determines that a control activity reduces the risk of material misstatement in relation to a management assertion and:
• The auditor has a basis for testing the control activity to determine if it was properly de____ed and being applied properly during the period under audit;
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
This will be the case, for example,
when the auditor determines that a control activity reduces the risk of material misstatement in relation to a management assertion and:
• The auditor has a basis for testing the control activity to determine if it was properly designed and being applied properly during the period under audit;
114
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
This will be the case, for example,
when the auditor determines that a control activity reduces the risk of material misstatement in relation to a management assertion and:
• The auditor has a basis for testing the control activity to determine if it was properly designed and being ap___ed properly during the period under audit;
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
This will be the case, for example,
when the auditor determines that a control activity reduces the risk of material misstatement in relation to a management assertion and:
• The auditor has a basis for testing the control activity to determine if it was properly designed and being applied properly during the period under audit;
115
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
This will be the case, for example,
when the auditor determines that a control activity reduces the risk of material misstatement in relation to a management assertion and:
• The auditor has a basis for testing the control activity to determine if it was properly designed and being applied properly d__ing the period under audit;
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
This will be the case, for example,
when the auditor determines that a control activity reduces the risk of material misstatement in relation to a management assertion and:
• The auditor has a basis for testing the control activity to determine if it was properly designed and being applied properly during the period under audit;
116
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
This will be the case, for example,
when the auditor determines that a control activity reduces the risk of material misstatement in relation to a management assertion and:
• The auditor has a basis for testing the control activity to determine if it was properly designed and being applied properly during the per___ under audit;
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
This will be the case, for example,
when the auditor determines that a control activity reduces the risk of material misstatement in relation to a management assertion and:
• The auditor has a basis for testing the control activity to determine if it was properly designed and being applied properly during the period under audit;
117
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
This will be the case, for example,
when the auditor determines that a control activity reduces the risk of material misstatement in relation to a management assertion and:
• The auditor has a basis for testing the control activity to determine if it was properly designed and being applied properly during the period under au___;
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
This will be the case, for example,
when the auditor determines that a control activity reduces the risk of material misstatement in relation to a management assertion and:
* The auditor has a basis for testing the control activity to determine if it was properly designed and being applied properly during the period under audit; and
* The nature, timing, and extent of further audit testing can be reduced as a result of relying on the control activity if the tests of controls indicate that it is effective.
118
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
This will be the case, for example,
when the auditor determines that a control activity reduces the RMM in relation to a management assertion and:
* The auditor has a basis for testing the control activity to determine if it was properly designed and being applied properly during the period under audit; and
* The n_____, timing, and extent of further audit testing can be reduced as a result of relying on the control activity if the tests of controls indicate that it is effective.
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
This will be the case, for example,
when the auditor determines that a control activity reduces the RMM in relation to a management assertion and:
* The auditor has a basis for testing the control activity to determine if it was properly designed and being applied properly during the period under audit; and
* The nature, timing, and extent of further audit testing can be reduced as a result of relying on the control activity if the tests of controls indicate that it is effective.
119
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
This will be the case, for example,
when the auditor determines that a control activity reduces the RMM in relation to a management assertion and:
* The auditor has a basis for testing the control activity to determine if it was properly designed and being applied properly during the period under audit; and
* The nature, t__ing, and extent of further audit testing can be reduced as a result of relying on the control activity if the tests of controls indicate that it is effective.
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
This will be the case, for example,
when the auditor determines that a control activity reduces the RMM in relation to a management assertion and:
* The auditor has a basis for testing the control activity to determine if it was properly designed and being applied properly during the period under audit; and
* The nature, timing, and extent of further audit testing can be reduced as a result of relying on the control activity if the tests of controls indicate that it is effective.
120
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
This will be the case, for example,
when the auditor determines that a control activity reduces the RMM in relation to a management assertion and:
* The auditor has a basis for testing the control activity to determine if it was properly designed and being applied properly during the period under audit; and
* The nature, timing, and ex____ of further audit testing can be reduced as a result of relying on the control activity if the tests of controls indicate that it is effective.
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
This will be the case, for example,
when the auditor determines that a control activity reduces the RMM in relation to a management assertion and:
* The auditor has a basis for testing the control activity to determine if it was properly designed and being applied properly during the period under audit; and
* The nature, timing, and extent of further audit testing can be reduced as a result of relying on the control activity if the tests of controls indicate that it is effective.
121
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
This will be the case, for example,
when the auditor determines that a control activity reduces the RMM in relation to a management assertion and:
* The auditor has a basis for testing the control activity to determine if it was properly designed and being applied properly during the period under audit; and
* The nature, timing, and extent of further audit testing can be re___ed as a result of relying on the control activity if the tests of controls indicate that it is effective.
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
This will be the case, for example,
when the auditor determines that a control activity reduces the RMM in relation to a management assertion and:
* The auditor has a basis for testing the control activity to determine if it was properly designed and being applied properly during the period under audit; and
* The nature, timing, and extent of further audit testing can be reduced as a result of relying on the control activity if the tests of controls indicate that it is effective.
122
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
This will be the case, for example,
when the auditor determines that a control activity reduces the RMM in relation to a management assertion and:
* The auditor has a basis for testing the control activity to determine if it was properly designed and being applied properly during the period under audit; and
* The nature, timing, and extent of further audit testing can be reduced as a re____ of relying on the control activity if the tests of controls indicate that it is effective.
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
This will be the case, for example,
when the auditor determines that a control activity reduces the RMM in relation to a management assertion and:
* The auditor has a basis for testing the control activity to determine if it was properly designed and being applied properly during the period under audit; and
* The nature, timing, and extent of further audit testing can be reduced as a result of relying on the control activity if the tests of controls indicate that it is effective.
123
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
This will be the case, for example,
when the auditor determines that a control activity reduces the RMM in relation to a management assertion and:
* The auditor has a basis for testing the control activity to determine if it was properly designed and being applied properly during the period under audit; and
* The nature, timing, and extent of further audit testing can be reduced as a result of relying on the co_____ activity if the tests of controls indicate that it is effective.
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
This will be the case, for example,
when the auditor determines that a control activity reduces the RMM in relation to a management assertion and:
* The auditor has a basis for testing the control activity to determine if it was properly designed and being applied properly during the period under audit; and
* The nature, timing, and extent of further audit testing can be reduced as a result of relying on the control activity if the tests of controls indicate that it is effective.
124
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
This will be the case, for example,
when the auditor determines that a control activity reduces the RMM in relation to a management assertion and:
* The auditor has a basis for testing the control activity to determine if it was properly designed and being applied properly during the period under audit; and
* The nature, timing, and extent of further audit testing can be reduced as a result of relying on the control activity if the t___s of controls indicate that it is effective.
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
This will be the case, for example,
when the auditor determines that a control activity reduces the RMM in relation to a management assertion and:
* The auditor has a basis for testing the control activity to determine if it was properly designed and being applied properly during the period under audit; and
* The nature, timing, and extent of further audit testing can be reduced as a result of relying on the control activity if the tests of controls indicate that it is effective.
125
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
This will be the case, for example,
when the auditor determines that a control activity reduces the RMM in relation to a management assertion and:
* The auditor has a basis for testing the control activity to determine if it was properly designed and being applied properly during the period under audit; and
* The nature, timing, and extent of further audit testing can be reduced as a result of relying on the control activity if the tests of controls indicate that it is eff_____.
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
This will be the case, for example,
when the auditor determines that a control activity reduces the RMM in relation to a management assertion and:
* The auditor has a basis for testing the control activity to determine if it was properly designed and being applied properly during the period under audit; and
* The nature, timing, and extent of further audit testing can be reduced as a result of relying on the control activity if the tests of controls indicate that it is effective.
126
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are rel_____ to the audit.
Some will be rel_______ in the professional judgment of the auditor.
This will be the case, for example,
when the auditor determines that a control activity reduces the RMM in relation to a management assertion and:
* The auditor has a basis for testing the control activity to determine if it was properly designed and being applied properly during the period under audit; and
* The nature, timing, and extent of further audit testing can be reduced as a result of relying on the control activity if the tests of controls indicate that it is effective.
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
Some will be relevant in the professional judgment of the auditor.
This will be the case, for example,
when the auditor determines that a control activity reduces the RMM in relation to a management assertion and:
* The auditor has a basis for testing the control activity to determine if it was properly designed and being applied properly during the period under audit; and
* The nature, timing, and extent of further audit testing can be reduced as a result of relying on the control activity if the tests of controls indicate that it is effective.
127
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
Some will be relevant in the professional judgment of the auditor.
This will be the case, for example,
when the auditor determines that a control activity reduces the RMM in relation to a management ass_____ and:
* The auditor has a basis for testing the control activity to determine if it was properly designed and being applied properly during the period under audit; and
* The nature, timing, and extent of further audit testing can be reduced as a result of relying on the control activity if the tests of controls indicate that it is effective.
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
Some will be relevant in the professional judgment of the auditor.
This will be the case, for example,
when the auditor determines that a control activity reduces the RMM in relation to a management assertion and:
* The auditor has a basis for testing the control activity to determine if it was properly designed and being applied properly during the period under audit; and
* The nature, timing, and extent of further audit testing can be reduced as a result of relying on the control activity if the tests of controls indicate that it is effective.
128
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
Some will be relevant in the professional judgment of the auditor.
This will be the case, for example,
when the auditor determines that a control activity reduces the RMM in relation to a management assertion and:
* The auditor has a ba___ for testing the control activity to determine if it was properly designed and being applied properly during the period under audit; and
* The nature, timing, and extent of further audit testing can be reduced as a result of relying on the control activity if the tests of controls indicate that it is effective.
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
Some will be relevant in the professional judgment of the auditor.
This will be the case, for example,
when the auditor determines that a control activity reduces the RMM in relation to a management assertion and:
* The auditor has a basis for testing the control activity to determine if it was properly designed and being applied properly during the period under audit; and
* The nature, timing, and extent of further audit testing can be reduced as a result of relying on the control activity if the tests of controls indicate that it is effective.
129
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
Some will be relevant in the professional judgment of the auditor.
This will be the case, for example,
when the auditor determines that a control activity reduces the RMM in relation to a management assertion and:
* The auditor has a basis for testing the control activity to determine if it was properly designed and being applied properly during the period under audit; and
* The nature, timing, and extent of further audit testing can be re___ed as a result of relying on the control activity if the tests of controls indicate that it is effective.
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
Some will be relevant in the professional judgment of the auditor.
This will be the case, for example,
when the auditor determines that a control activity reduces the RMM in relation to a management assertion and:
* The auditor has a basis for testing the control activity to determine if it was properly designed and being applied properly during the period under audit; and
* The nature, timing, and extent of further audit testing can be reduced as a result of relying on the control activity if the tests of controls indicate that it is effective.
130
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
Some will be relevant in the professional judgment of the auditor.
This will be the case, for example,
when the auditor determines that a control activity reduces the RMM in relation to a management assertion and:
* The auditor has a basis for testing the control activity to determine if it was properly designed and being applied properly during the period under audit; and
* The nature, timing, and extent of further audit testing can be reduced as a result of re__ing on the control activity if the tests of controls indicate that it is effective.
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
Some will be relevant in the professional judgment of the auditor.
This will be the case, for example,
when the auditor determines that a control activity reduces the RMM in relation to a management assertion and:
* The auditor has a basis for testing the control activity to determine if it was properly designed and being applied properly during the period under audit; and
* The nature, timing, and extent of further audit testing can be reduced as a result of relying on the control activity if the tests of controls indicate that it is effective.
131
In addition to identifying control activities, the auditor will have to determine if control activities are relevant to the _____.
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
132
How does the auditor determine if control activities are relevant to the audit?
Example:
When the auditor determines that a control activity reduces the risk of material misstatement (RMM) in relation to a management assertion
and:
• The auditor has a basis for testing the control activity
and
• The nature, timing, and extent of further audit testing can be reduced
How does the auditor will determine if control activities are relevant to the audit?
Example:
When the auditor determines that a control activity reduces the risk of material misstatement (RMM) in relation to a management assertion
and:
• The auditor has a basis for testing the control activity to determine if it was properly designed and being applied properly during the period under audit;
and
• The nature, timing, and extent of further audit testing can be reduced as a result of relying on the control activity if the tests of controls indicate that it is effective.
133
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
Some will be relevant in the professional judgment of the auditor.
This will be the case, for example,
when the auditor determines that a control activity reduces the R__ in relation to a management assertion and:
* The auditor has a basis for testing the control activity to determine if it was properly designed and being applied properly during the period under audit; and
* The nature, timing, and extent of further audit testing can be reduced as a result of relying on the control activity if the tests of controls indicate that it is effective.
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities, the auditor will have to determine if they are relevant to the audit.
Some will be relevant in the professional judgment of the auditor.
This will be the case, for example,
when the auditor determines that a control activity reduces the RMM in relation to a management assertion and:
* The auditor has a basis for testing the control activity to determine if it was properly designed and being applied properly during the period under audit; and
* The nature, timing, and extent of further audit testing can be reduced as a result of relying on the control activity if the tests of controls indicate that it is effective.
134
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain r___s that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
135
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a ma______ misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
136
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that can___ be evaluated on the basis of substantive evidence alone.
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
137
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be eva____ed on the basis of substantive evidence alone.
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
138
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the ba___ of substantive evidence alone.
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
139
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of subs_____ evidence alone.
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
140
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evid______ alone.
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
141
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
```
This might be the case, for example,
for a class of tr________s that is processed automatically
```
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
```
This might be the case, for example,
for a class of transactions that is processed automatically
```
142
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
This might be the case, for example,
for a cl___ of transactions that is processed automatically
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
```
This might be the case, for example,
for a class of transactions that is processed automatically
```
143
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
```
This might be the case, for example,
for a class of transactions that is processed automatically with a minimum of ma____ intervention
```
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
```
This might be the case, for example,
for a class of transactions that is processed automatically with a minimum of manual intervention
```
144
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
```
This might be the case, for example,
for a class of transactions that is processed automatically with a min_____ of manual intervention
```
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
```
This might be the case, for example,
for a class of transactions that is processed automatically with a minimum of manual intervention
```
145
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
```
This might be the case, for example,
for a class of transactions that is processed automatically with a minimum of manual intervention
and where much of the info________ related to the initiation,
authorization,
recording,
processing, and
reporting
is in electronic form.
```
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
```
This might be the case, for example,
for a class of transactions that is processed automatically with a minimum of manual intervention
and where much of the information related to the
initiation,
authorization,
recording,
processing, and
reporting
is in electronic form.
```
146
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
```
This might be the case, for example,
for a class of transactions that is processed automatically with a minimum of manual intervention
and where much of the information related to the init______,
authorization,
recording,
processing, and
reporting
is in electronic form.
```
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
```
This might be the case, for example,
for a class of transactions that is processed automatically with a minimum of manual intervention
and where much of the information related to the
initiation,
authorization,
recording,
processing, and
reporting
is in electronic form.
```
147
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
```
This might be the case, for example,
for a class of transactions that is processed automatically with a minimum of manual intervention
and where much of the information related to the
initiation,
aut_________,
recording,
processing, and
reporting
is in electronic form.
```
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
```
This might be the case, for example,
for a class of transactions that is processed automatically with a minimum of manual intervention
and where much of the information related to the
initiation,
authorization,
recording,
processing, and
reporting
is in electronic form.
```
148
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
```
This might be the case, for example,
for a class of transactions that is processed automatically with a minimum of manual intervention
and where much of the information related to the
initiation,
authorization,
re____ing,
processing, and
reporting
is in electronic form.
```
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
```
This might be the case, for example,
for a class of transactions that is processed automatically with a minimum of manual intervention
and where much of the information related to the
initiation,
authorization,
recording,
processing, and
reporting
is in electronic form.
```
149
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
```
This might be the case, for example,
for a class of transactions that is processed automatically with a minimum of manual intervention
and where much of the information related to the initiation, authorization, recording, pro____ing, and reporting is in electronic form.
```
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
```
This might be the case, for example,
for a class of transactions that is processed automatically with a minimum of manual intervention
and where much of the information related to the initiation, authorization, recording, processing, and reporting is in electronic form.
```
150
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
```
This might be the case, for example,
for a class of transactions that is processed automatically with a minimum of manual intervention
and where much of the information related to the initiation, authorization, recording, processing, and re____ing is in electronic form.
```
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
```
This might be the case, for example,
for a class of transactions that is processed automatically with a minimum of manual intervention
and where much of the information related to the initiation, authorization, recording, processing, and reporting is in electronic form.
```
151
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
```
This might be the case, for example,
for a class of transactions that is processed automatically with a minimum of manual intervention
and where much of the information related to the initiation, authorization, recording, processing, and reporting is in elec______ form.
```
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
```
This might be the case, for example,
for a class of transactions that is processed automatically with a minimum of manual intervention
and where much of the information related to the initiation, authorization, recording, processing, and reporting is in electronic form.
```
152
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
This might be the case, for example, for a class of transactions that is processed automatically with a minimum of manual intervention and where much of the information related to the initiation, authorization, recording, processing, and reporting is in electronic form.
The reliability of inf_______ derived from such transactions would be dependent on the controls related to the processing of those transactions.
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
This might be the case, for example, for a class of transactions that is processed automatically with a minimum of manual intervention and where much of the information related to the initiation, authorization, recording, processing, and reporting is in electronic form.
The reliability of information derived from such transactions would be dependent on the controls related to the processing of those transactions.
153
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
This might be the case, for example, for a class of transactions that is processed automatically with a minimum of manual intervention and where much of the information related to the initiation, authorization, recording, processing, and reporting is in electronic form.
The re________y of information derived from such transactions would be dependent on the controls related to the processing of those transactions.
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
This might be the case, for example, for a class of transactions that is processed automatically with a minimum of manual intervention and where much of the information related to the initiation, authorization, recording, processing, and reporting is in electronic form.
The reliability of information derived from such transactions would be dependent on the controls related to the processing of those transactions.
154
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
This might be the case, for example, for a class of transactions that is processed automatically with a minimum of manual intervention and where much of the information related to the initiation, authorization, recording, processing, and reporting is in electronic form.
The reliability of information de___ed from such transactions would be dependent on the controls related to the processing of those transactions.
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
This might be the case, for example, for a class of transactions that is processed automatically with a minimum of manual intervention and where much of the information related to the initiation, authorization, recording, processing, and reporting is in electronic form.
The reliability of information derived from such transactions would be dependent on the controls related to the processing of those transactions.
155
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
This might be the case, for example, for a class of transactions that is processed automatically with a minimum of manual intervention and where much of the information related to the initiation, authorization, recording, processing, and reporting is in electronic form.
The reliability of information derived from such tran_______ns would be dependent on the controls related to the processing of those transactions.
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
This might be the case, for example, for a class of transactions that is processed automatically with a minimum of manual intervention and where much of the information related to the initiation, authorization, recording, processing, and reporting is in electronic form.
The reliability of information derived from such transactions would be dependent on the controls related to the processing of those transactions.
156
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
This might be the case, for example, for a class of transactions that is processed automatically with a minimum of manual intervention and where much of the information related to the initiation, authorization, recording, processing, and reporting is in electronic form.
The reliability of information derived from such transactions would be dependent on the co_____s related to the processing of those transactions.
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
This might be the case, for example, for a class of transactions that is processed automatically with a minimum of manual intervention and where much of the information related to the initiation, authorization, recording, processing, and reporting is in electronic form.
The reliability of information derived from such transactions would be dependent on the controls related to the processing of those transactions.
157
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
This might be the case, for example, for a class of transactions that is processed automatically with a minimum of manual intervention and where much of the information related to the initiation, authorization, recording, processing, and reporting is in electronic form.
The reliability of information derived from such transactions would be dependent on the controls related to the pro____ing of those transactions.
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
This might be the case, for example, for a class of transactions that is processed automatically with a minimum of manual intervention and where much of the information related to the initiation, authorization, recording, processing, and reporting is in electronic form.
The reliability of information derived from such transactions would be dependent on the controls related to the processing of those transactions.
158
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
This might be the case, for example, for a class of transactions that is processed automatically with a minimum of manual intervention and where much of the information related to the initiation, authorization, recording, processing, and reporting is in electronic form.
The reliability of information derived from such transactions would be dependent on the controls related to the processing of those trans________s.
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
This might be the case, for example, for a class of transactions that is processed automatically with a minimum of manual intervention and where much of the information related to the initiation, authorization, recording, processing, and reporting is in electronic form.
The reliability of information derived from such transactions would be dependent on the controls related to the processing of those transactions.
159
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the fi_______ statements that cannot be evaluated on the basis of substantive evidence alone.
This might be the case, for example, for a class of transactions that is processed automatically with a minimum of manual intervention and where much of the information related to the initiation, authorization, recording, processing, and reporting is in electronic form.
The reliability of information derived from such transactions would be dependent on the controls related to the processing of those transactions.
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
This might be the case, for example, for a class of transactions that is processed automatically with a minimum of manual intervention and where much of the information related to the initiation, authorization, recording, processing, and reporting is in electronic form.
The reliability of information derived from such transactions would be dependent on the controls related to the processing of those transactions.
160
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence al___.
This might be the case, for example, for a class of transactions that is processed automatically with a minimum of manual intervention and where much of the information related to the initiation, authorization, recording, processing, and reporting is in electronic form.
The reliability of information derived from such transactions would be dependent on the controls related to the processing of those transactions.
Elements of Internal Control: (CRIME)
• C = Control Activities
There may also be certain risks that could result in a material misstatement to the financial statements that cannot be evaluated on the basis of substantive evidence alone.
This might be the case, for example, for a class of transactions that is processed automatically with a minimum of manual intervention and where much of the information related to the initiation, authorization, recording, processing, and reporting is in electronic form.
The reliability of information derived from such transactions would be dependent on the controls related to the processing of those transactions.
161
Elements of Internal Control: (CRIME)
• C = Control Activities
COSO has indicated that there are 3 prin____s related to control activities.
Elements of Internal Control: (CRIME)
• C = Control Activities
COSO has indicated that there are 3 principles related to control activities.
162
Elements of Internal Control: (CRIME)
• C = Control Activities
C___ has indicated that there are 3 principles related to control activities.
Elements of Internal Control: (CRIME)
• C = Control Activities
COSO has indicated that there are 3 principles related to control activities.
163
Elements of Internal Control: (CRIME)
• C = Control Activities
COSO has indicated that there are 3 principles related to control act____es.
Elements of Internal Control: (CRIME)
• C = Control Activities
COSO has indicated that there are 3 principles related to control activities.
164
Elements of Internal Control: (CRIME)
• C = Control Activities
COSO has indicated that there are 3 principles related to con____ activities.
Elements of Internal Control: (CRIME)
• C = Control Activities
COSO has indicated that there are 3 principles related to control activities.
165
Elements of Internal Control: (CRIME)
• C = Control Activities
COSO has indicated that there are _ principles related to control activities.
They indicate that management and those charged with governance:
1. Select and develop control activities;
2. Select and develop general controls over technology; and
3. Deploy controls through policies and procedures.
Elements of Internal Control: (CRIME)
• C = Control Activities
COSO has indicated that there are 3 principles related to control activities.
They indicate that management and those charged with governance:
1. Select and develop control activities;
2. Select and develop general controls over technology; and
3. Deploy controls through policies and procedures.
166
Elements of Internal Control: (CRIME)
• C = Control Activities
3 principles
m_________ and those charged with governance:
1. Se____ and develop control activities;
Elements of Internal Control: (CRIME)
• C = Control Activities
3 principles
management and those charged with governance:
1. Select and develop control activities;
167
Elements of Internal Control: (CRIME)
• C = Control Activities
3 principles
management and those charged with governance:
1. Select and dev____ control activities;
Elements of Internal Control: (CRIME)
• C = Control Activities
3 principles
management and those charged with governance:
1. Select and develop control activities;
168
Elements of Internal Control: (CRIME)
• C = Control Activities
3 principles
management and those charged with governance:
1. Select and develop control ac____ies;
Elements of Internal Control: (CRIME)
• C = Control Activities
3 principles
management and those charged with governance:
1. Select and develop control activities;
169
Elements of Internal Control: (CRIME)
• C = Control Activities
3 principles
management and those charged with governance:
2. Sel___ and develop general controls over technology;
Elements of Internal Control: (CRIME)
• C = Control Activities
3 principles
management and those charged with governance:
2. Select and develop general controls over technology;
170
Elements of Internal Control: (CRIME)
• C = Control Activities
3 principles
management and those charged with governance:
2. Select and dev____ general controls over technology;
Elements of Internal Control: (CRIME)
• C = Control Activities
3 principles
management and those charged with governance:
2. Select and develop general controls over technology;
171
Elements of Internal Control: (CRIME)
• C = Control Activities
3 principles
management and those charged with governance:
2. Select and develop gen____ controls over technology;
Elements of Internal Control: (CRIME)
• C = Control Activities
3 principles
management and those charged with governance:
2. Select and develop general controls over technology;
172
Elements of Internal Control: (CRIME)
• C = Control Activities
3 principles
management and those charged with governance:
2. Select and develop general con____s over technology;
Elements of Internal Control: (CRIME)
• C = Control Activities
3 principles
management and those charged with governance:
2. Select and develop general controls over technology;
173
Elements of Internal Control: (CRIME)
• C = Control Activities
3 principles
management and those charged with governance:
2. Select and develop general controls over tec______;
Elements of Internal Control: (CRIME)
• C = Control Activities
3 principles
management and those charged with governance:
2. Select and develop general controls over technology;
174
Elements of Internal Control: (CRIME)
• C = Control Activities
3 principles
management and those charged with governance:
3. Deploy co____s through policies and procedures.
Elements of Internal Control: (CRIME)
• C = Control Activities
3 principles
management and those charged with governance:
3. Deploy controls through policies and procedures.
175
Elements of Internal Control: (CRIME)
• C = Control Activities
3 principles
management and those charged with governance:
3. Deploy controls through po____es and procedures.
Elements of Internal Control: (CRIME)
• C = Control Activities
3 principles
management and those charged with governance:
3. Deploy controls through policies and procedures.
176
Elements of Internal Control: (CRIME)
• C = Control Activities
3 principles
management and those charged with governance:
3. Deploy controls through policies and pro_____es.
Elements of Internal Control: (CRIME)
• C = Control Activities
3 principles
management and those charged with governance:
3. Deploy controls through policies and procedures.
177
Elements of Internal Control: (CRIME)
• C = Control Activities
3 principles
management and those charged with governance:
3. Dep___ controls through policies and procedures.
Elements of Internal Control: (CRIME)
• C = Control Activities
3 principles
management and those charged with governance:
3. Deploy controls through policies and procedures.
178
Elements of Internal Control: (CRIME)
• C = Control Activities
3 principles
management and those charged with gov_______:
1. Select and develop control activities;
2. Select and develop general controls over technology; and
3. Deploy controls through policies and procedures.
Elements of Internal Control: (CRIME)
• C = Control Activities
3 principles
management and those charged with governance:
1. Select and develop control activities;
2. Select and develop general controls over technology; and
3. Deploy controls through policies and procedures.
179
What are control activities?
Elements of Internal Control: (CRIME)
• C = Control Activities
Control activities are policies and procedures that help ensure that management directives are carried out.
180
What type of focus of control activities that involving the evaluation of performance against some criteria?
(such as comparing actual amounts to budgeted amounts,
comparing current period results to those of prior years,
or evaluating financial data in relation to nonfinancial data.)
Elements of Internal Control: (CRIME)
* C = Control Activities
* Performance Reviews
– Controls involving the evaluation of performance against some criteria such as comparting actual amounts to budgeted amounts, comparing current period results to those of prior years, or evaluating financial data in relation to nonfinancial data.
181
Comparing actual amounts to budgeted amounts is consider what type of focus of control activity?
Elements of Internal Control: (CRIME)
* C = Control Activities
* Performance Reviews
– Controls involving the evaluation of performance against some criteria such as comparing actual amounts to budgeted amounts, comparing current period results to those of prior years, or evaluating financial data in relation to nonfinancial data.
182
Comparing current period results to those of prior years is consider what type of focus of control activity?
Elements of Internal Control: (CRIME)
* C = Control Activities
* Performance Reviews
– Controls involving the evaluation of performance against some criteria such as comparing actual amounts to budgeted amounts, comparing current period results to those of prior years, or evaluating financial data in relation to nonfinancial data.
183
Evaluating financial data in relation to nonfinancial data is consider what type of focus of control activity?
Elements of Internal Control: (CRIME)
* C = Control Activities
* Performance Reviews
– Controls involving the evaluation of performance against some criteria such as comparing actual amounts to budgeted amounts, comparing current period results to those of prior years, or evaluating financial data in relation to nonfinancial data.
184
What type of focus of controls that prevent the processing of information unless certain criteria are met?
(such as the matching of certain documentation before recording a sale. )
Elements of Internal Control: (CRIME)
* C = Control Activities
* Information Processing
– Controls that prevent the processing of information unless certain criteria are met,
such as the matching of certain documentation before recording a sale.
185
Matching of certain documentation before recording a sale is consider an example of what type of focus of control activity?
Elements of Internal Control: (CRIME)
* C = Control Activities
* Information Processing
– Controls that prevent the processing of information unless certain criteria are met,
such as the matching of certain documentation before recording a sale.
186
In IT environment, the general controls that relate to the overall operation of the system is consider what type of focus of control activity?
Elements of Internal Control: (CRIME)
* C = Control Activities
* Information Processing
– Controls that prevent the processing of information unless certain criteria are met,
In an information technology, or IT, environment,
there are general controls that relate to the overall operation of the system, including the structure of the organization and access to information;
and application controls that relate to specific functions being performed.
187
In IT environment, the general controls that relate to the overall operation of the system, including the structure of the organization and access to information; and application controls that relate to specific functions being performed – is consider what type of focus of control activity?
Elements of Internal Control: (CRIME)
* C = Control Activities
* Information Processing
– Controls that prevent the processing of information unless certain criteria are met,
In an information technology, or IT, environment,
there are general controls that relate to the overall operation of the system, including the structure of the organization and access to information;
and application controls that relate to specific functions being performed.
188
Controls that limit access to assets is consider what type of focus of control activity?
Elements of Internal Control: (CRIME)
* C = Control Activities
* Physical controls
– Controls that limit access to assets.
189
What type of focus of control activity that involve assigning different people responsibilities for authorizing and recording transactions?
Elements of Internal Control: (CRIME)
* C = Control Activities
* Segregation of duties
– Controls that involve assigning different people responsibilities for authorizing transactions, recording transactions, maintaining custody of assets, and performing reconciliations or comparisons.
190
What type of focus of control activity that involve assigning different people responsibilities for maintaining custody of assets and performing reconciliations?
Elements of Internal Control: (CRIME)
* C = Control Activities
* Segregation of duties
– Controls that involve assigning different people responsibilities for authorizing transactions, recording transactions, maintaining custody of assets, and performing reconciliations or comparisons.
191
What type of focus of control activity that is intended to reduce the opportunities to allow any person to be in a position to both perpetrate and conceal errors or fraud in the normal course of their duties?
Elements of Internal Control: (CRIME)
* C = Control Activities
* Segregation of duties
– It is intended to reduce the opportunities to allow any person to be in a position to both perpetrate and conceal errors or fraud in the normal course of their duties (ARCC-S).
```
o Authorization of transactions
o Recording (posting) of transactions
o Custody of assets
o Comparisons
▪ Segregation of duties
```
192
In addition to identifying control activities,
| the auditor will have to determine if control activities are ________ to the audit.
Elements of Internal Control: (CRIME)
• C = Control Activities
In addition to identifying control activities,
the auditor will have to determine if control activities are relevant to the audit.
193
Elements of Internal Control: (CRIME)
C = Control Activities
Control activities are policies and procedures that help ensure that management directives are carried out.
The focus of control activities may be one of the following:
* Performance reviews
* Information processing
* Physical controls
* Segregation of duties
------------
• Performance reviews
– Controls involving the evaluation of performance against some criteria such as comparing actual amounts to budgeted amounts, comparing current period results to those of prior years, or evaluating financial data in relation to nonfinancial data.
• Information processing
– Controls that prevent the processing of information unless certain criteria are met, such as the matching of certain documentation before recording a sale.
In an information technology, or IT, environment, there are general controls that relate to the overall operation of the system, including the structure of the organization and access to information; and application controls that relate to specific functions being performed.
• Physical controls
– Controls that limit access to assets.
• Segregation of duties
– Controls that involve assigning different people responsibilities for authorizing transactions, recording transactions, maintaining custody of assets, and performing reconciliations or comparisons.
It is intended to reduce the opportunities to allow any person to be in a position to both perpetrate and conceal errors or fraud in the normal course of their duties (ARCC-S).
o Authorization of transactions
o Recording (posting) of transactions
o Custody of assets
o Comparisons
▪ Segregation of duties
Elements of Internal Control: (CRIME)
C = Control Activities
Control activities are policies and procedures that help ensure that management directives are carried out.
The focus of control activities may be one of the following:
* Performance reviews
* Information processing
* Physical controls
* Segregation of duties
------------
• Performance reviews
– Controls involving the evaluation of performance against some criteria such as comparing actual amounts to budgeted amounts, comparing current period results to those of prior years, or evaluating financial data in relation to nonfinancial data.
• Information processing
– Controls that prevent the processing of information unless certain criteria are met, such as the matching of certain documentation before recording a sale.
In an information technology, or IT, environment, there are general controls that relate to the overall operation of the system, including the structure of the organization and access to information; and application controls that relate to specific functions being performed.
• Physical controls
– Controls that limit access to assets.
• Segregation of duties
– Controls that involve assigning different people responsibilities for authorizing transactions, recording transactions, maintaining custody of assets, and performing reconciliations or comparisons.
It is intended to reduce the opportunities to allow any person to be in a position to both perpetrate and conceal errors or fraud in the normal course of their duties (ARCC-S).
o Authorization of transactions
o Recording (posting) of transactions
o Custody of assets
o Comparisons
▪ Segregation of duties
