ERM Flashcards
What is Inherent Risk
Risk that an activity would pose if no controls or other mitigating factors were in place
What is Residual Risk
Risk that remains after controls are taken into accout (net risk)
What is Event Risk
Risk an unforseen event will negatively impact the company
What is Detection Risk
Risk an auditor will conclude no material misstatement exists in the financial statements when there are
What is the Statistical Likelihood Method
What are the elements of a complete disaster recovery plan
Alternate processing site, backup and off-site storage procedures, identification of critical applications, test of the planAlternate processing site, backup and off-site storage procedures, identification of critical applications, test of the plan
What are the aspects of EDI
Compressed cycle of orders, purchases, deliveries, and payments. Generally increases the needs to test computer controls and the need for security. Has no impact on samplng techniques.
