Definition and Importance
This is a process designed to provide reasonable ____ regarding the achievement of objectives
What is assurance?
This group has the most responsibility for internal controls
What is management?
This is a widely used framework for internal controls giving 5 key components
What is the COSO Model?
This is the process of identifying and analyzing potential threats to an organization
What is risk assessment?
This is a process that involves reviewing the controls for weaknesses
What is monitoring?
This is an objective which internal controls aim to achieve related to money management and specifically its disclosure
What is financial reporting?
This group must follow the internal controls procedures and report concerns
Who are employees?
This component of the COSO model involves identifying and preventing potential dangers
What is risk assessment?
This is a key determination that management must make prior to implementing internal controls
What are potential risks?
This ensures employees understand and follow procedures
What is training?
This is an objective which internal controls aim to achieve related to functions and performance
What is operation?
This group is in charge of management, and ensures they are carrying out their obligations
What is a board of directors?
This component ensures continuous review, revision, and improvement of controls
What is monitoring?
This is a threat from within the company, such as employee failure
What is internal risk?
This is a responsibility of the company to record policies and procedures as well as their effectiveness
What is documentation?
This is an objective which internal controls aim to achieve related to legal obligations
What is compliance?
This is a group of individuals purposefully separated from the group in order to measure the effectiveness of internal controls
Who are internal auditors?
This component includes policies like approvals and segregation of duties.
What are control activities?
This is a threat from outside the company, such as economic instability
What is external risk
This is required when internal controls are not operating efficiently
This is the full definition of "internal controls"
What is "A process designed to provide reasonable assurance regarding the achievement of objectives?"
This is a common misconception that the responsibility of internal controls falls squarely on this group
What is management?
This component ensures relevant data is shared across the organization
What is information and communication?
This is the first step of risk assessment and, ultimately, management
What is identification?
This assigns specific roles so no singular employee controls all parts of a transaction
What is segregation of duties?