SU 5 - Control

Question 1

Controls that operate without human intervention.

Answer 1

Automated controls

Question 2

Omissions or misstatements of information that would significantly impact the decisions of the users of financial reports.

Answer 2

Material weaknesses

Question 3

A type of proactive control that deters undesirable events from occurring.

Answer 3

Preventive Control

Question 4

Any action taken by management, the board, and other parties to manage risk and increase the likelihood that established objectives and goals will be achieved.

Answer 4

Control

Question 5

An IT control that applies generally to the IT environment or overall mix of systems, networks, data, people, and processes.

Answer 5

IT General Control (ITGC)

Question 6

Controls that compensate for the lack of an expected control; for example, close supervisory review may compensate for a lack of segregation of duties where a small staff size makes proper segregation impractical.

Answer 6

Compensating controls

Question 7

A type of internal control deficiency that severely reduces the likelihood that the organization can achieve its objectives and prevents management from determining that it has met the requirements for an effective system of internal control.

Answer 7

Major deficiencies

Question 8

The specific IT controls that must be in place for management and governance controls to be effective.

Answer 8

Technical controls

Question 9

The policies, procedures, and activities that are part of a control framework, designed to ensure that risks are contained within the risk tolerances established by the risk management process.

Answer 9

Control processes

Question 10

The attitude and actions of the board and management regarding the significance of control within the organization; provides the discipline and structure for the achievement of the primary objectives of the system of internal control.

Answer 10

Control environment

Question 11

A type of control that is reactive and that detects undesirable events that have occurred.

Answer 11

Detective control

Question 12

A type of internal control deficiency that severely reduces the likelihood that the organization can achieve its objectives and prevents management from determining that it has met the requirements for an effective system of internal control.

Answer 12

Significant deficiencies

Question 13

Automated error checks built into computer processing as well as segregation of duties such as controlling programmers’ access to files and records.

Answer 13

Processing controls

Question 14

Controls that help the process run smoothly but are not essentials.

Answer 14

Secondary controls

Question 15

A type of control intended to prevent computer errors by controlling data as it manually or electronically enters the system.

Answer 15

Input controls

Question 16

A process designed to provide reasonable assurance regarding the achievement of objectives in the categories of effectiveness and efficiency of operations, reliability of financial reporting, and compliance with applicable laws and regulations.

Answer 16

Internal Control

Question 17

A condition within enterprise risk management worthy of attention that may represent a perceived, potential, or real shortcoming or an opportunity to strengthen enterprise risk management to increase the likelihood that the entity’s objectives will be achieved.

Answer 17

Deficiency

Question 18

A recognized system of concepts encompassing all elements of internal control.

Answer 18

Control framework

Question 19

An IT control related to the specific functioning of an application system that supports a specific business process.

Answer 19

Application control

Question 20

Controls that must operate effectively to reduce a significant risk to an acceptable level.

Answer 20

Key controls

Question 21

Detective controls that find errors and verify the accuracy and reasonableness of output data after processing is complete.

Answer 21

Output controls

Question 22

A method to appropriately manage risk so that business objectives can be achieved at the lowest cost.

Answer 22

System of internal control

Question 23

Tasks that prevent or detect a deviation from the approved procedure. Work by some type of conscious intervention.

Answer 23

Manual controls

Question 24

A variety of assessment techniques, including facilitated workshops and surveys, in which the assessment is performed by people involved in the area or process being assessed rather than by an independent party.

Answer 24

Control self-assessment