Internal Controls Flashcards
Monitoring is one of the 5 components of the COSO Framework. Effective monitoring for change consists of 4 steps
TYPE 1 and TYPE 2 of SOC 1 and SOC 2
Internal Control inherent limitations (COP)
- Collusion among employees
- Override by management
- Poor judgment and errors
Financial statement audit vs integrated audit
An auditor would expect to find automated controls that reduce the risks of misstatement in systems that __________
Process high volume, similar, reoccurring transactions.
Control Activities
What are Bylaws
Internal rules and procedures for corporate governance. Indicates # of directors, selection process, compensation, responsibilities, etc.
Separation of duties pic
What are the ongoing monitoring steps in evaluating the effectiveness of an internal control system?
Proper segregation of duties is intended to reduce the opportunities of employees _____
perpetuate and conceal errors and irregularities.
Components of internal control
To test segregation of duties an auditor will often do ______
inquiry and observation.
COSO’s internal control framework consists of 5 components, one of which is monitoring of controls. What are monitoring of controls two principles.
What are the internal control objectives _____
Procedures on internal controls during audit planning.
4 Procedures on testing internal controls
What is a trojan horse
A malware that appears legit but inflicts harm on a computer system.
Inherent limitations of internal controls
An introduction of a new line of product affects the 4 steps of ________,
Monitoring, (the one of the 5 component of the coso framework. The 4 steps
Risk assessment (component of COSO Framework_
Two principles of control environment
