THE HEIRARCHY OF INTERNAL CONTROLS
Every auditor should consider two fundamental issues concerning internal control:
Issue 1: Management is often exempt from controls. Ye who make the rules might try to avoid those rules.
Risks in automation:
1. Wrong data entry of user
2. Incompatibility of user and system. (ex: lack of knowledge of user in operating the system)
3. Need of human response to the IT or accounting system. (ex: ordering of products)
Hostile Takeovers Defenses
Energizer Holdings said Friday that it has adopted a poison pill antitakeover measure with a 10%
trigger, expiring about six months after the company completes its split into two entities.
A poison pill, or sharehold