Internal controls-1

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Unformatted text preview: Click to edit Master subtitle style 8/22/11 Internal controls 8/22/11 Last time Completing the audit Wrapping up procedures Reporting Professional judgment Shift gears 8/22/11 What do we know about IC? Mechanism to reduce information risk Gain an understanding of IC during planning to assess CR If CR < 100% - we will test controls during the performing of the audit 8/22/11 Internal controls A process, affected by an entitys board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories: Reliability of financial reporting Effectiveness and efficiency of 8/22/11 How to design good controls? Follow COSO framework COSO Committee of Sponsoring Organizations of the Treadway Commission www.coso.org COSO framework developed in the 1980s Recent documents have been issued 8/22/11 Internal controls 5 components { 5 9 A D E 4 C A -B 0 1 6 -4 F B C -B 2 5 C -9 6 A 1 D A 4 D 9 C 4 } Monitoring { 3 8 1 5 9 D 0 F -5 C 4 D -4 D 5 3 -8 9 7 8 -B F C A 3 5 A 2 C 8 6 D } Control activities { C 8 3 2 0 7 C 5 -9 8 7 C -4 0 3 7 -B 1 F 7 -A 9 0 4 D 6 B 8 3 A 9 } Risk assessment { D D 4 8 7 F A 8 -C 2 D -4 A 6 9 -9 8 9 B -3 C 4 E 6 A 9 7 3 F 0 }...
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This note was uploaded on 08/22/2011 for the course ACIS 3414 taught by Professor Yardley during the Spring '08 term at Virginia Tech.

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