Internal Control Flashcards
The 5 components of IC
Control Activities
Risk Assessment
Information & Communication systems
Monitoring of Controls
Control Environment
The principles of the Control Environment
Demonstrate commitment to integrity and ethics
Boards of directors exercise oversight responsibility
Establish structure, authority & responsibility
Demonstrate commitment to competence
Enforce accountability
Risk Assessment
Specifies suitable objectives
Identifies and analyzes risk
assesses fraud risk
Identifies and analyzes significant change
Information and communication systems
Uses relevant information
Communicates internally
communicates externally
Monitoring
Conducts ongoing and/or separate evaluations
evaluates and communicates deficiencies
Control activities
Selects and develops control activities
Selects and develops general controls over technology
Deploys control activities through policies and procedures
The audit approach could be
Non-control reliance or control reliance approach
Non-control reliance audit approach is used when
the controls are not designed and implemented properly
Control reliance audit approach is used when
the control are designed and implemented properly
