ugaud.ch6(a) - What are Internal Controls(Our focus is on...

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11 Chapter 6(a) What are Internal Controls? (Our focus is on financial reporting controls) Built-in safeguards which, if implemented properly, will increase the likelihood that published financial statements are reliable.
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22 What are the components of internal control?
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33 the control environment What are the components of internal control? The overall attitude of management toward the importance of controls. It is the foundation -- without it, no other component will be enough.
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44 Factors related to the Control Environment: Management’s attitude toward control and integrity and ethical values Does management communicate values and standards through policy statements, codes of conduct, and by example ? Does management remove or reduce incentives or temptations that might lead to dishonest, illegal, or unethical acts?
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Factors related to the Control Environment: commitment to competence-- human resources policies and practices Management should hire and train personnel to ensure they are competent (should also be trustworthy and motivated to meet objectives).
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ugaud.ch6(a) - What are Internal Controls(Our focus is on...

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