Chapter 5 - Control and Information Systems Flashcards
1
Q
Internal contol system objectives/benefits
A
- Reliability of financial statements
- Efficiency/Effectiveness of operations
- Compliance with laws + regulation
2
Q
2 key elements of internal control systems
A
-
Control environment - management sttitude and philosophy
- org structure, audit function?, culture
-
Control procedures - polices/procedures
- e.g. time sheets, inventory count
3
Q
Control Procedures
(SOAPSPAM)
A
- Supervision of subordinated
- Organisation - structure, autyonomy, centralised?
- Authorisation e.g. POs, overtime
- Personnel - recruitment, training
- Segregation of duties
- Physical - lock, password
- Arithmentic and accounting - bank rec, VAT return
- Management
- Internal audit
- Audit committee
4
Q
Open / Closed Systems
A
- Open system - interacts with other systems/outside environment
- Closed system - little / no interaction
5
Q
Costs of |nformation
A
- Direct data capture
- Processing costs
- Indirect costs - ‘info overload’, staff could be used elsewhere
6
Q
Systems Development Life Cycle (SDLC)
A
- Planning/Feasibility
- Analysis
- Design
- Development - dpcument changes, training
- Implementation - e.g. direct/parallel, testing
- Maintenance - post implementation review
7
Q
2 types of system controls
A
- General - password, virus, physical, training, recruitment
- Application - validation, verification
8
Q
Disaster recovery plan
A
- Responsibilities
- Priorities
- Backup/standby
- Communication/PR
9
Q
Internal Control Systems
(defn)
A
The policies/procedures adopted by management to assist in achieving their objectives
