Internal Control Summary Flashcards by Nick Duley | Brainscape

Q

First control?

A

Sales

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Q

Second control?

A

Purchase

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Q

Third control?

A

Inventory

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Q

Fourth control?

A

Payroll

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Q

Fifth control?

A

Non-current assets

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Q

Sixth control?

A

Bank and Cash

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Q

Identify deficiency (segragation)

A

Weak segragation duties

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Q

Identify deficiency (seniority)

A

Seniority of staff member

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Q

Identify deficiency (authorisation)

A

No authorisation

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Q

Identify deficiency (review)

A

No review of work

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Q

Identify deficiency (autom)

A

Automation vs manual

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Q

Identify deficiency (look no)

A

Look for no/not in the question

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Q

Identify deficiency (doc)

A

Documentational issue

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Q

Recommendation (repeat)

A

Don’t repeat

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Q

Recommendation (value)

A

Add value

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Q

Recommendation (who perform)

A

Who should perform the activity

Q

Recommendation (when perform)

A

When it should be performed

Q

Recommendation (frequency)

A

Frequency?

Q

Recommendation (specific)

A

Be specific

Q

What is meant by key control?

A

What management have taken to reduce fraud and error

Q

Keywords to explain key control?

A

Minimises/reduces the risk of

This ensures that

Q

Explain deficiency (sales)

A

Loss of future sales

Q

Explain deficiency (customer)

A

Loss of custoemr goodwill

Q

Explain deficiency (cash)

A

Cash flow problems

Q

Explain deficiency (cost)

A

Increase in cost

Q

Explain deficiency (result)

A

This could result in

Q

Explain deficiency (risk)

A

There is a risk that

Q

Test of control (enquire)

A

Enquire with management

Q

Test of control (observe)

A

Observe the process/activity

Q

Test of control (Reperform)

A

Reperform the test data

Q

Test of control (inspect)

A

Inspect documents

Q

Difference between internal controls and substantive procedures>

A

Analytical procedures isn’t included in test of controls