Internal Control

Question 1

5 components of I/C

Answer 1

1) Control Environment
2) Risk Assessment
3) Info & communications system
4) Control activities
5) Monitorying

Question 2

Control environment elements (7)

Answer 2

1) Communicate & enforce ethical values
2) Commitment to competence
3) Participation by those in charge
4) Mgmt philosophy & op style
5) Org structure
6) Assignment of authority & responsibility
7) HR polices & practices

Question 3

Control Activities :0

Answer 3

S - segregation
C - physical Control
A - Authorization
R - performance Review
E - EDP/IT - info processing

Question 4

Segregation of duties

Answer 4

separating record keeping, access and authorization

Question 5

COSO Cube

Answer 5

5 components of internal conrol
3 objectives (F/R, operations, compliance)
2 entity (unities and functions)

Question 6

Documentation Requirements

Answer 6

1) Discuss
2) elements & understanding of I/C
3) Assess RMM @ F/S level
4) Identify significant risks & related controls
5) Reasonable assuredness - cost benefit

Question 7

Types of audit processes

Answer 7

1) Risk assessment
2) tests of controls - can be further audit process
3) sustanative - can be further audit process