Home > Flashcards > Print Preview

The flashcards below were created by user isatonk on FreezingBlue Flashcards. What would you like to do?

  1. What is internal control?
    System to provide reasonable assurance that objectives are met; Making sure everything is as it is supposed to be.
  2. What are the 3 functions of control?
    - Preventative (deter problems)

    - Detective (discover problems)

    - Corrective (correct problems).
  3. What are some objectives internal control checks for?
    - safeguard assets

    - maintain records appropriatly

    - reports are fair and accurate

    - provide accurate and reliable info

    - prepare financial reports in accordance with established criteria

    - improve and promote operational efficiency

    - encourage adherence to policies

    - comply with laws and regulations.
  4. What are the 2 control categories?
    - General (overall system and process; entire organization)

    - Application (transactions are processed correctly; app works as it should).
  5. What are some objectives of the Sarbanes-Oxley Act of 2002 (SOX)?
    - prevent financial statement fraud

    - inrease transparency of financial reports

    - protect investors

    - stregthen internal controls

    - establish responsibility for executives.
  6. What does PCAOB stand for and what is it?
    Public Company Accounting Oversight Board

    = organization that oversees auditors.
  7. What are some of the rules SOX changed/introduced?
    - new auditing rules (partner rotation; separation of audit and non-audit services)

    - new rules for audit committees (independent, but part of BOD; one must be financial expert; oversee external auditors)

    - new rule for management (responsibility for fairness and review of financial statements; resp. for sharing material IC weaknesses and fraud w/ auditors)

    - new IC requirements (establishing and maintaining adequate IC system).
  8. What are the IC frameworks discussed in chapter 7?
    • COBIT
    • = Control Objectives for Information and Related Technology
    • - business objectives, IT resources + processes

    • COSO
    • = Committee of Sponsoring Organizations
    • - (non IT IC) control environment + activities, assess risks, info and communication, monitoring.
  9. Briefly describe the enterprise risk management model.
    set objectives (what org. needs to do)

    => ID event (that enables reaching objectives)

    => assess risk (that can threaten event).
  10. What are the 5 choices when it comes to risk control?
    - Accept

    - Diversify

    - Share

    - Transfer

    - Avoid.

Card Set Information

2012-07-21 18:46:40
AIS Accounting Information Systems ch7

Accounting Information Systems ch7
Show Answers:

What would you like to do?

Home > Flashcards > Print Preview