If you love COSO Flashcards
What are the major steps of the COSO model of control monitoring?
estalish a foundation for monitoring
Design and execute monitoring procedures
Assess and report control evauluation results
What are the primary themese associated with Attribute standards
purpose, authority, and responsibility
proficiency, and due professional care
quality assurance and improvement program
What type of standards distinguishes between assurance services and consulting services
Implementation
What are the 7 primary performance standards?
Manging the internal audit activity Nature of work Engagemnt planning Performing the engagement Communicating results Monitoring progress Resolution of Sr Mgmt acceptance of risks
What does risk reduction primarily relate to in the COSO control principles?
control activities - risk reduction, tech controls, and policies
If a company moves it production facilities
risk reduction
Performance standards def
describes internal auditing and identify the quality criteria applicable to the performance of internal audit services
Risk free rate
reward expected for deferring current consumption and does not change as the perceived risk of an undertaking increases or decreases.
Risk premium
reward for risk.
NPV technique
compares the PV of expected cash inflows with the PV of cash outflows to determine whether or not a capital project is economically feasible. Requires a predetermined discount rate. often the firms cost of capital is used as the discount rate
What are shortcomings of the payback period method
failure to use discounted amounts and the fact that it is only concerned with the period required to receover the initial investment, not the entire life.
REgression analysis
statistical tool used for investigating relationships between variables
Profitability index equation
PV of annual after-tax cash flows by the original cash invested in the project
What would be used to verify that a program was free of unauthorized changes?
Source code comparison program - compares an archived version of the program to the program in use.
Who is responsible for designing, creating, and testing progams?
Application programmers.
OLAP (online analytical processing system)
incorporates data warehouse and data mining capabiliites within the ERP.
What type of control is an audit trail?
processing
What role is responsible for prioritizing systems development proposals?
IT steering committee - principal duty is to approve and prioritize systems proposals for development
What is the program documentation?>
provides a detailed analysis of the input data, the program logic, and the data output. it consists of program flowcharts, source code listings, record layouts.
what is the systems doc
provides an overview of the program and data files, processing logic, and interactions with each of the other programs and systems and is appropriate for the auditor to use as a means of gaining familiarity with the system.
what type of system includes redundancy of components
Fault tolerant
What is a low cost wired transmission medium?
twisted pair
What is specifically designed to exchange financial info over the WWW
Extensible business reporting language
What system is a payroll system?
transaction processing system
Examples of ecommerce systems
supply chain mgmt
EFT
electronic data interchange
