Week 1 | Control and Accounting Information System

Question 1

Why is Control Needed?

Answer 1

1. Any unwanted event that could be injurious is referred to threats
2. Potential Dollar is refferred to impact

Question 2

Objective of AIS

Answer 2

1. Control the organisation, so that the objectives of the organisation can be archieved

Question 3

Management Expect accountants to..

Answer 3

1. Elimination system threats
2. Detect, Correct, and Recover from threats

Question 4

Internal Control is the process implemented to archieve objective of:

Answer 4

1. Safeguard assets
2. Maintain Sufficient records
3. Provide accurate and reliable information
4. Prepare financial report according to establised criteria
5. Promote and improve operational efficiency
6. adherence with management policy
7. Comply with laws and regulation

Question 5

Function on Internal Control

Answer 5

1. Preventive controls
2. Detective Controls
3. Corrective Controls

Question 6

5 Components of COSO Framework

Answer 6

1. Control Environment
2. Risk Assessment
3. Control Activities
4. Information and Communication
5. Monitoring

Question 7

What is Control Environment?

Answer 7

1. Management phylosophy, Operating style
2. Commitment to integrity
3. Organizing Structure
4. Human Resource Standards

Question 8

Two Perspective of Risk Assessment

Answer 8

1. Likelihood - Probability that the event will be occur
2. Impact - Estimate potential loss if event occur

Question 9

Types of Risk

Answer 9

1. Inherest - Risk that exist before plan are made to control it
2. Residual - Risk that left over after you control it

Question 10

What is risk response?

Answer 10

1. Reduce - implement effective control
2. Accept - Do nothing
3. Share - But insurance/outsource
4. Avoid - Do not engage in the activity

Question 11

What is control activities?

Answer 11

1. Proper segregation of duties
2. Proper authorization of transaction and activities
3. Project development and acquisition of control
4. Change management control
5. Design and use of documents and records
6. Safeguard assets, documents, and data
7. Independ checks on performance

Question 12

Separation of Duties

Question 13

3 principles to information and communication

Answer 13

1. Obtain and generate relevant, hugh quality information to support internal control
2. Internally communicate the information, inclusing objective and responsibilities, support the internal controls
3. Communicate relevant internal controls matters to external parties

Question 14

What is monitoring?

Answer 14

1. perform internal evaluations
2. implement effective supervision
   Use responsibilty accounting systems
3. Employ computer security officer
4. perform periodic audits
5. Engage forensic specialist