Chapter 3 Notes
Notes for Chapter 3
Chapter 3 Notes
Risks
hazard risk
directors and officers liability
strategic
business strategy
legal and regulatory
operational
human error
systems
financial
liquidity
credit
market
definition and purposes
reasonable assurance using cost/benefit ratio
broad range of organizations
widespread responsibility
process of internal control
COSO framework
Examples
job rotation
bank reconciliation
document matching
separation of duties
control environment
risk assessment
control activities
Information and Communication
Monitoring
internal controls
compliance with management directives
promote operating efficiency
ensure reliable financial reporting
safeguard assets
Expected Outcomes
summarize and critique internal controls
define and represent risks
Define and explain internal controls and their purpose
