Extra2

Question 1

information-based control framework

Answer 1

business (goals operations) –> information & communication (goals information) –> data (goals data) –> information, communication & technology (goals IT)

Question 2

according to the information-based control framework, the following domains of any organization needs to be controlled

Answer 2

• business domain
• information & communication domain (information provided in business domain)
• data domain (data used for information provision)
• information, communication & technology domain - all electronic media used to input, process, store and provide data and to support and enable communication)

Question 3

goals can be set for the quality of information along the following criteria

Answer 3

• validity (in accordance with reality)
• accuracy (free or error)
• completeness (all relevant information)
• timeliness (provided in time)
• understandability
• efficiency (produced at reasonable cost)
• effectiveness (can be used)

Question 4

uniform distribution - runif (n, min, max)

Answer 4

any outcome is equally likely to occur - minimal value distribution, maximum value distribution

Question 5

sequential distribution - seq (from = , to = )

Answer 5

items are ordered in a sequence

Question 6

COSO framework / house

Answer 6

• control environment (foundation)
• monitoring (roof)
• control activities (windows)
• risk assessment (windows)
• information & communication (walls, touches all other 4 areas of internal control)

Question 7

internal control COSO

Answer 7

internal control is a process, effected by the entity’s board of directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives related to operations, reporting and compliance

Question 8

BIDE formula

Answer 8

Beginning balance + Increases - Decreases = Ending balance

Question 9

poisson distribution - rpois (n, lambda)

Answer 9

describes number of occurrences of an event in a time period - lambda is the average rate at which an event occurs

Question 10

exponential distribution - rexp (n, rate)

Answer 10

describes the time elapsed between event - average time between events

Question 11

binomial distribution - rbinom (n, size, prob)

Answer 11

outcome is a category - number of trials, probability of succes for each trial

Question 12

aging method AR

Answer 12

breaks down AR into different age categories (example AR <45 , AR > 46 & AR > 120, AR >120 days)