Week 5 - Components of Internal Control Flashcards
1
Q
What are the five components of internal control?
A
- control environment
- risk assessment process
- control activities
- control procedures
- monitoring procedures, including audit
2
Q
Control environment
A
‘The tone from the top’ - directors should be setting the standard
3
Q
Risk assessment process
A
Interrogate directors about their risk assessment process and how they are monitoring it
4
Q
Control activities
A
Detailed policies that are established - should be able to ask for list
5
Q
Control procedures
A
The actual controls in place to make up these systems and policies
6
Q
Monitoring procedures, including audit
A
Ensuring all controls are working and checking if they need to be improved / investigating fraudulent activity
