Audit Flashcards
What is internal control?
Measures and methods adopted by an organisation to safeguard its cash, to check the accuracy of data, to promote efficiency, and encourage adherence
What are the four key concepts of internal control’s definition?
It is a process, it is affected by people, it is only expected to give reasonable assurance, and it is geared to the achievement of objectives
What are the five components of internal control?
Monitoring, information and communication, control activities, risk assessment, and control environment
What is Control Environment?
The foundation for control
What is Control Activities?
Policies and procedures that help ensure directives are carried out
What is Information and Communication in an internal control context?
Pertinent information to help workers carry out objectives, and effective communication to help them understand their role
What is Monitoring in an internal control context?
Assess the quality of the internal control’s system’s performance over time
What is an Audit?
A check of accounts, or efficiency check
What is a Security Audit?
Monitor the degree that security controls are effective
What is an Internal Audit?
Monitors the degree at which internal controls are effective
Why does Financial Auditing look at security?
A large part of the audit will likely look at unauthorised access, unauthorised program changes, or inappropriate data changes
Why audit security?
So that you know which parts are effective or not in deterring attackers, therefore being able to consider what else is needed to keep information safe or if you are taking too little or too much risk
