Change Control Process Flashcards
Chaos Corp. is a highly dynamic business in an economic environment that is characterized by frequent, rapid shocks and changes. The industry is highly innovative with fast-moving competitors, changing consumer expectations, evolving regulatory requirements, and rapid technological innovation. To date, upper management at Chaos Corp. has been unsuccessful in managing change within the business. They seek ways to improve their control environment and have hired your firm as consultants on this issue.
As a consultant for Chaos Corp., prepare a memo to management discussing the change control process and suggesting change management controls.
-Effectively managing the system of control in a dynamic business environment is critical to achieving organizational goals and objectives.
-Creating well-designed processes to request, review, specify, plan for, approve, implement, and monitor system changes is central to this endeavor.
-Effective change control processes and policies, established by management, ensure that only authorized changes are implemented.
-Change control management is the responsibility of upper management and key executives.
-Personnel are responsible for carrying out the work already established and implemented by management
-Ultimate accountability for internal control, including change control, processes rests with upper management.
Chaos Corp. is a highly dynamic business in an economic environment that is characterized by frequent, rapid shocks and changes. The industry is highly innovative with fast-moving competitors, changing consumer expectations, evolving regulatory requirements, and rapid technological innovation. To date, upper management at Chaos Corp. has been unsuccessful in managing change within the business. They seek ways to improve their control environment and have hired your firm as consultants on this issue.
As a consultant for Chaos Corp., prepare a memo to management discussing the change control process and suggesting change management controls.
What are the 4 steps recommended by COSO?
1) Determine a foundation or baseline for monitoring controls. In the present case, this would require an initial focal area where controls are understood and documented.
2) Identify important changes in operations, controls, or risks related to the chosen area and to assess their likely effects.
3) Assess the revised effectiveness of controls in light of the identified changes.
4) Revalidate and establish a new control baseline as a basis for future assessments of changes.
Chaos Corp. is a highly dynamic business in an economic environment that is characterized by frequent, rapid shocks and changes. The industry is highly innovative with fast-moving competitors, changing consumer expectations, evolving regulatory requirements, and rapid technological innovation. To date, upper management at Chaos Corp. has been unsuccessful in managing change within the business. They seek ways to improve their control environment and have hired your firm as consultants on this issue.
As a consultant for Chaos Corp., prepare a memo to management discussing the change control process and suggesting change management controls.
What should be considered in effectively managing changes in a system of internal control?
-Risk analysis
-Written change control procedures, change request forms
-Quality systems to map business requirements to control system changes
-Competent change implementation
-Testing and review teams
-Appropriate segregation of duties
-Appropriate permission and authorization systems
-Document retention
-Destruction policies and systems
