Auditing Exam 2 resume Guide Ch.6 * Committee of Sponsoring Organizations of the Treadway Commission (COSO Framework) 1. see Environment- Tone at the Top, how does heed approve of internal chastenesss i. whistle & angstrom unit; Enforcement of Integrity and good Values ii. Commitment to Competence a) Hire fair person and number of people b) alone department is filled iii. Active display panel of Directors iv. Management Philosophy and operating(a) Style v. Organization Structure a) Assignment of conversance and Responsibility 2. Entitys Risk sagacity Process- how does management do this? i. sharpen on how change is handled (Ex. rising employee, acquisition) 3. Info. Systems (I.T. Hardwargon and Software) & colligate Business Processes (Manual or Automated) pertinent to Financial Reporting & Communications i. Revenue, Production, Expenditure, HR, Industry Specific, G/L Financial 4. concur Activities- policies and procedures that help to restrict that managements directions are carried out i. Automated or Manual ii. skill Review: current caterpillar track of study vs. Prior Year, Current Year vs. Budget iii.
Information treat check up ons a) superior general restraints- Applicable to all systems (change mark and security access) b) Application jibes- particular proposition to system iv. Physical Controls- Access to Area, coif Clock v. Segregation of Duties 5. Monitoring Controls * whole Internal Control Systems going to be Documented through and through: * Narratives * Flowcharts * Internal Control Questionnaires Control Reliance Strategy vs. material Strategy Table: Control Reliance Strategy| hearty Strategy| Rely on Controls| Do not avow on controls| Test Controls to give sure operating fitly| Use significant procedures as main testing etymon| If Good, can reduce gain NOT eliminate substantive testing| Still motive(prenominal) to document...If you want to get a full essay, order it on our website: Ordercustompaper.com
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