Internal Control Components
They help ensure that necessary actions are taken to address risks to achievement of the entity's objectives.
What is control activities?
A report that provides a broad assessment of internal controls within the command or agency and identifies any material weaknesses in these internal controls.
What is An Annual Statement of Assurance?
This is the effective beginning fiscal year of OMB Circular A-123 - Management's Responsibility for Internal Control.
What is Fiscal Year 2006?
Prohibited bribes to foreign— non-US— officials and contained provisions requiring the maintenance of accurate books, records, and systems of internal accounting controls.
What was the 1977 Foreign Corrupt Practices Act (FCPA)?
Examples include a safe, vault, locked doors/desk drawers, computer passwords, and card key systems.
What are physical safeguards?
It includes regular management and supervisory activities, and other actions personnel take in performing their duties.
What is monitoring?
Stewardship, synchronization, anticipation, improvisation, simplicity, and consistency.
What are the six principles of financial management?
This requires agencies to use a disciplined capital planning and investment control (CPIC) process to maximize the value of and assess and manage the risks of the information technology acquisitions.
What is the Clinger-Cohen Act of 1996?
This US law enacted in 2004 to improve financial reporting audit processes and to correct a series of board of director, public accounting, and other practices.
What is the Sarbanes-Oxley Act?
Approving a transaction is assuming responsibility for the authenticity of that transaction or verifying it.
What is Authorization and Verification?
It is the foundation for all other components of internal control, providing discipline and structure.
What is control environment?
They are responsible for developing and maintaining internal controls within their organizations.
Who are Commanders?
This council may be useful in determining when sufficient action has been taken to declare that a reportable condition or material weakness has been corrected.
What is Senior Management Council?
These relate to the achievement of an enterprise’s basic mission— the fundamental reasons for its existence.
What are operations objectives?
Acts as a deterrent to fraud or concealment because collusion with another individual is required to complete the fraudulent act.
What is Separation of Duties?
Because economic, industry, regulatory and operating conditions will continue to change, mechanisms are needed to identify and deal with the special risks associated with change.
What is risk assessment?
This program is designed to provide reasonable assurance that programs operate as intended and ensures that areas needing improvement are identified and reported, and that timely corrective action is taken.
What is the Army Managers’ Internal Control Program?
This act provides the statutory basis for management’s responsibility for and assessment of internal control.
What is the Federal Managers’ Financial Integrity Act (FMFIA) of 1982?
In this report, the external auditor evaluates the efforts of a service organization at the time of audit to prevent accounting inconsistencies, errors, and misrepresentation.
What is a Type I report?
Controls include: authentication, access, incident management, backup and recovery processes, secure configuration, patch management, anti-virus software.
What is Information Technology?
All personnel must receive a clear message from top management that control responsibilities must be taken seriously.
What is information and communication?
This United States Code requires DOD components, which includes the Department of the Army, to establish and maintain effective controls over appropriations and other funds.
What is Section 1514(a) of Title 31?
Requires the assurance statement assert to the effectiveness of internal control "as of June 30." The assurance statement and corrective actions, if applicable, will be submitted in the PAR no later than 45 days after the end of each fiscal year.
What is Section V. Management’s Assessment of Internal Control over Financial Reporting?
Post World War II, this country invited US-based quality systems experts such as Frederick Deming to help out in their industrial plants.
What is Japan?
Reconciliations are critical controls which ensure the accuracy and completeness of transactions. They are particularly important where standalone subsystems exist.
What is Accuracy and Completeness?