COSO 4 Flashcards
Applications Control Activities
Authorizations Verifications Reconciliations Physical Access Controls Supervision of Processes
Steps in Understanding Controls over TEchnology
Identify IT application control activities over input, storage, output and processing
Information Processing OBjectives
Completeness
Accuracy
Validity
Enterprise Resource Management Objectives
Cube the top
SORC Strategy Operations Reporting Compliance
The components of the ERM model
Versus the Objectives
Versus the other side of the cube which is the entity?
IS EAR AIM
Internal Processes
Setting Objectives
Event Identification
Risk Assessment
Risk Identification
Control Activities
Information and Communication
Monitoring
Audit Comtee Financial Expert SOX
Familiarity with GAAP
Familiar With FInancial Statements
Financial Reporting and Proceedures and Internal Control
Experience in preparation of financial statements or supervising someone who does and
FS must be comparable with that of the issuer but the expert does not need experience in the industry
MUST DISCLOSE WHY IF DON’T HAVE ONE
What internal control can do
Ensure reliability of financial reporting
Ensure compliance with rules and regs
Limitations of internal Control
Faulty decision making
Breakdowns - error or mistake
Collusion
Mgt Override
What is a limiting factor in internal control
Resources are limited
Benefits of controls must be considered relative to their costs
COSO Roles for Management
CEO assumes ownership
More than anyone else sets the tone at the top
Financial officers are particularly significant because their control activities cut across and well as up and down the operating and other units of an enterprise
COSO and the BOD Role
Governance, Guidance and Oversight
Objective, Capable and Inquisitive
Strong, active board, when coupled with effective upward communications channels
can spot management override
COSO and Internal Auditors
Significant Monitoring Role
All employees and COSO
Internal Control responsibility of everyone
Discounted Cash Flow/Initial Investment is Called What and what do you use it for
Profitability Index
Ranking projects
Why are IT General Controls Over
Infrastructure and Operations
Security of Data and Software
Systems Development LifeCycle
