CH8 - Internal Control Systems Flashcards
1
Q
Objectives of any system of internal control
A
- Risks
- Operations
- Reporting
- Compliance
- Safeguard assets
Inherent limitations of any system of internal control
2
Q
Categories of Control
A
- Corporate, management, business process and transaction
- admin and accounting
- prevent, detect, correct and direct
- discretionary and non-discretionary
- voluntary and mandated
- general and application
- financial and non-financial
3
Q
Control Procedures
A
APIPS:
- authorisation
- performance review
- information systems
- physical controls
- segregation of duties
4
Q
Types of information
A
External
Financial
Non-financial
5
Q
Levels of information
A
- strategic
- tactical
- operational
6
Q
Qualities of good information
A
ACCURATE
- Accurate
- Complete
- Cost-beneficial
- User-targeted
- Relevant
- Authoritative
- Timely
- Easy to use
7
Q
Assessing the quality of internal audit
A
- scope
- authority
- independence
- resources
8
Q
Independence
A
- objectivity
- impartiality
- unbiased views
- valid opinions
- no spying for management
- no no-go areas
- sensitive areas audited
- senior management audited
- no backing off
