TBS - Internal Control & Fraud Prevention Flashcards
1
Q
What is internal control?
A
A set of processes that are designed to provide reasonable assurance regarding the achievement of objectives related to:
- effectiveness and efficiency of operations
- reliability of financial reporting
- compliance with applicable laws and regulations
2
Q
Who is responsible for internal control?
A
Management and BOD
3
Q
What are some strategies for creating an ethical culture?
A
- Management emphasizing the critical role of ethics
and integrity to organizational success - Emphasizing the role of mission statements and
codes of conduct in promoting integrity - Management’s actions and words
4
Q
Segregation of Duties
A
Different individuals are responsible for:
Recording
Authorization
Custody
