EnterpriseSystemControls

EnterpriseSystemControls - Enterprise System Risks and...

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Click to edit Master subtitle style 9/27/11 Enterprise System Risks and Controls
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9/27/11 214-2 The Relationship between Risks, Opportunities, and Controls Risks A risk is any exposure to the chance of injury or loss (also known as a threat ). Opportunities and Objectives Opportunity and risk go hand in hand. You can't have an opportunity without some risk and with every risk there
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9/27/11 314-3 Internal Control Systems Congress passed the Sarbanes-Oxley Act requiring publicly traded companies to issue reports on their internal control systems along with their annual financial reports Management is responsible for establishing and maintaining adequate internal controls for financial reporting Reports must include assessments of the effectiveness of the internal controls and the financial reporting procedures Sarbanes-Oxley also requires auditors to attest to and report on management’s assessments AICPA’s Statement on Auditing Standards No. 94
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9/27/11 414-4 Control Environment Control environment sets the tone of the organization, which influences the control consciousness of its people. This foundation provides discipline and structure upon which all other components of internal control are built. The control environment includes the following areas: Integrity and ethical behavior Commitment to competence Board of directors and audit committee participation Management philosophy and operating style Organization structure
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514-5 Control activities are the policies and procedures the organization uses to ensure that necessary actions are taken to minimize risks associated with achieving its objectives. Controls have various objectives and may be applied at various organizational and functional levels. Control Activities
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This note was uploaded on 09/27/2011 for the course 6K 180 taught by Professor Staff during the Spring '11 term at University of Iowa.

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EnterpriseSystemControls - Enterprise System Risks and...

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