Chpt_9_outline_-_information_controls

Chpt_9_outline_-_information_controls - CHAPTER 8 OPERATION...

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CHAPTER 8 – OPERATION AND INFORMATION CONTROLS Operation Controls The ERM framework details that internal controls should be employed to ensure that management’s objectives and policies are being met. Therefore, many internal controls are used to make sure that the company’s operations are aligned with management’s strategies. Control goals: Operations controls tend to have three goals: 1. Effectiveness – 2. Efficiency – 3. Security –
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Control plans: Effectiveness: For example, in a cash receipts process: Efficiency: Security: Information Controls We also need to protect the integrity of the information in our system. Information controls may be grouped according to the fundamental information processing model (I-P-O):
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Input controls Control goals: Data input has three primary goals 1. Input accuracy – 2. Input completeness – 3. Input validity – Control plans: Document (or form) design (pg. 311) – source documents should be designed to facilitate their completion (input accuracy) Sequentially numbered documents (pg. 321) – allows you to identify missing documents (input completeness) Turnaround documents (pg. 320) – machine-printed forms that are sent to the customer who returns them to the company; the machine-printed portions are highly accurate and
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Chpt_9_outline_-_information_controls - CHAPTER 8 OPERATION...

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