Flashcards
Module 3
Cards in this deck (7)
- 1Name 3 reasons why directors implement a sound system of internal control?- To provide them with reasonable assurance over the reliability of financial reporting, the effectiveness of operations and compliance with applicable laws.
- 2Which 5 components should a sound system of internal control include?Control environment
Risk assessment process
Information systems
Control activities
Monitoring of controls - 3Give an example of each component of internal control?Control environment = Staff manual
Risk assessment process = Meetings w/senior management
Information systems = Payroll system
Control activities = Authorisation
Monitoring of controls = Monthly exception reports - 4Define a business process?A series of activities that enable a company to meet one or more of its objectives.
- 5Give two examples of business processes?Budgeting process and Marketing process
- 6Define business risk?The threat that an action or event will adversely affect an organisation's ability to achieve its objectives
- 7—
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- ICAS AR Flashcards on Module 3, created by Kaifali Bapuji on 01/10/2021.
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- Kaifali Bapuji
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