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Chapter 7 notes - -In complying with SOX organizations...

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--In complying with SOX, organizations improved decision making, obtained process efficiencies, engendered greater public confidence in their financial reporting, and improved their overall value --Controlling business processes is a critically important element of organizational governance and enterprise risk management Organizational Governance Organizational governance: a process by which organizations select objectives, establish processes to achieve objectives and monitor performance Enterprise Risk Management Enterprise Risk Management: a process, effected by an entity's board of directors, management and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may effect the entity, and manage risk to be within its appetite, to provide reasonable assurance regarding the achievement of entity objectives --Developed to help management identify, assess and manage risk --ERM framework addresses four categories of management objectives: Strategic: High-level goals aligned with and supporting its mission Operations: Effective and efficient use of its resources Reporting: Reliability of reporting Compliance: Compliance with applicable laws and regulations Risks: events that would have a negative impact on an organization objectives, and opportunities are events that would have a positive impact on objectives Likelihood-the possibility that an event will occur, and impact is the effect of an event's occurrence --We can avoid risk by leaving the activity that is giving rise to the risk --We can reduce risk by taking actions that reduce the likelihood of an event --We can share risk, i.e. buy insurance
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