Control

Question 1

What are the internal control classifications?

Answer 1

Preventative
Detective
Corrective

Question 2

What is feedback control?

Answer 2

Review output and adjust process

Question 3

What is feed forward control?

Answer 3

Review input and adjust if wrong

Question 4

What is included in the control environment? (Tone)

Answer 4

Integrity
Managements philosophy
Authority and responsibility 
HR policies 
External influences (legislation)

Question 5

What are some control activities?

Answer 5

• authorisation of transactions
• segregation of duties (ARC: authorisation, recording and custodian)
• documents and records
• safeguarding of assets
• internal checks

Question 6

AIS main objectives?

Answer 6

1. Identify and record all valid transactions
2. Properly classify transactions
3. Record transactions at their appropriate amount
4. Record transactions in correct accounting period
5. Properly disclose the information

Question 7

Reasons for internal controls?

Answer 7

• safeguard assets
• provide accurate information
• Improve operational efficiency
• adherence to management policies

Question 8

What are the typical functions of an AIS?

Answer 8

Systems analysts
Computer operations
Programming
Transaction authorisation
Library control

Question 9

What are some general controls?

Answer 9

-good documentation
-file labels
Protection through locks/tags/keys
Read only software commands
Concurrent data controls
Shredder
Cryptographic protection
Hardware controls