BEC- Writing Comp Prompts

Question 1

If you see keywords:

change control process
change management controls

Answer 1

Think:
Control Base management - Costs vs. Benefits

COSO four-stage process for monitoring controls:
1. Baseline for monitoring
2. Identify
3. Assess
4. Revalidate and establish a new control baseline

Effectively managing changes-
risk analysis, written procedures, mapping workflows, and documentation retention and destruction

Question 2

If you see keywords:

Sarbanes-Oxley Act
expanded role of a company’s audit committee

Answer 2

Think:
Sarbanes-Oxley Act came about due to the Enron scandals

Audit committee Independent

At least 1 Financial Expert ( experience and knowledge)

External Auditors Report to the Audit Committee Regarding
- accounting policies and practices used
- alternative treatments discussed with management
- material communications btw auditor and management