ACC 3202 Lecture 1: 2.5.17 AIS 3202
11 Feb 2017
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Document Summary
Erm (enterprise risk management) is defined as : A process effected by an entity"s bod, management, and other personnel applied in strategy setting across enterprise. Designed to identify potential events that affect entity. Certain group of people in organization take care of this function) Provide reasonable assurance regarding achievement of objectives ex) exon mobil sell/ gas make profit. Bod, cfo, ceo, controllers think about what is the strategy. Erm requires management to set policies and procedures related to: Everything we do is a set of activities. Needs to be communicated to them to help management achieve objectives set ex) email communications to convey objectives. Day to day basis people at bottom need to be monitored. So they figure out if entity is reaching objectives or not. Erm: ensured my management types of control structures: Code of ethics: code to follow put in writing. Reduce possibility of fraudulent conduct and opportunities-> they will know it"s not ethical.
