Controls

Question 1

Control def

Answer 1

CIMA- the ability to direct the financial and operating policies of an entity with a view of gaining economic benefits

Question 2

Visual control

Answer 2

Ibm placement- daily call dashboard- colours- correct during the day

Question 3

Types of controls

Answer 3

Preventative - to stop potential errors
Corrective- stop
Detective- identify problems

Question 4

Preventative example

Answer 4

John Lewis approving signing deliveries e.g click and collect, Waitrose, special orders etc

Question 5

Detective example

Answer 5

Internal audit- identify problems- reduces external audit costs- only legal for listed plcs

Question 6

Corrective

Answer 6

Prevent errors reoccurring- user accounts against sensitive info

Question 7

Ma controls

Answer 7

Proper records, preventing fraud, budgeting type of control- variance analysis

Question 8

Link risk management example

Answer 8

Ibm risk databases- new control- risks can’t be resolved, action plans checked regularly for corporate audit

Question 9

Link external environment

Answer 9

Better tech- ais- visual dashboards