GOVERNANCE, BUSINESS ETHICS, RISK MANAGEMENT AND INTERNAL CONTROL
Activity 3 (Group Work): Demonstrate How the Internal Control Components Operate Together ...................... 102 Definition of Terms ........................................................................................................ 103
CHAPTER 5 Assessment of Risks and Selection of Risk Strategies
Learning Objectives ....................................................................................................... 73 Introduction ................................................................................................................... 73 Components of COSO Enterprise Risk Management ..................................................... 74 Risk Assessments........................................................................................................... 78 Documentation of the Risk Assessment, Risk Response, and Control Activities............ 81 Monitoring and Testing of the Risk Management Process............................................. 82 Guide Questions ............................................................................................................ 83 Activity 1: Assessing Risks and Selecting an Appropriate Control Activity .................... 84 Activity 2: Assessing Risks and Selecting an Appropriate Control Activity .................... 84 Activity 3: Internet Assignment ..................................................................................... 85 Definition of Terms ........................................................................................................ 86
CHAPTER 7 Internal Control in Action
Learning Objectives ....................................................................................................... 105 Introduction ................................................................................................................... 105 Entity-level Controls ...................................................................................................... 106 Transaction-level Controls ............................................................................................. 107 Hard and Soft Controls .................................................................................................. 107 Internal Controls as to Lines of Defense ........................................................................ 108 Preventive Controls ....................................................................................................... 108 Detective Controls ......................................................................................................... 109 Corrective Controls........................................................................................................ 109 Automated Controls ...................................................................................................... 110 Specific Control Activities per Major Account ............................................................... 110 Overview of Fraud ......................................................................................................... 114 Fraud Triangle ................................................................................................................ 115 Control Deficiencies....................................................................................................... 116 Internal and External Auditing....................................................................................... 117 Guide Questions ............................................................................................................ 118 Activity 1: Hard and Soft Controls ................................................................................. 118 Activity 2: Categorizing Controls into Preventive, Detective, or Corrective................... 119 Activity 3: Fraud Triangle Elements ............................................................................... 119 Internet Assignment: ACFE’s 2020 Report to the Nations.............................................. 119 Definition of Terms ........................................................................................................ 120
CHAPTER 6 Concept of Internal Control
Learning Objectives ....................................................................................................... 87 Introduction ................................................................................................................... 87 Definition of Internal Control ........................................................................................ 88 The Need for an Internal Control Framework – COSO................................................... 89 Categories of Internal Control Objectives...................................................................... 89 Components of Internal Control.................................................................................... 92 COSO Requirements for Integrated Components.......................................................... 95 “Operating Together” of Internal Control Components ............................................... 96 Link Between Risks and Control Activities ..................................................................... 97 Limitations of Internal Control....................................................................................... 99 Guide Questions ............................................................................................................ 100 Activity 1: Control Policies and Procedures .................................................................. 101 Activity 2: Internal Control Assessment ........................................................................ 102
References .................................................................................................................... 122 Index ............................................................................................................................. 124
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