ITM 100 Lecture Notes - Lecture 8: Internal Control, Corporate Governance Of Information Technology, Fidelity Bond

• School: Ryerson University
• Department: Information Technology Management
• Course: ITM 100
• Professor: Alec Cram

Document Summary

Describe the major pervasive controls that organizations employ as part of their internal control structure. Explain how pervasive controls help ensure continuous, reliable operational and it processes. Appreciate how an organization must plan and organize all resources, including it resources, to ensure achievement of its strategic vision. Overview the major controls used to manage the design and implementation of new processes, especially new it processes. Appreciate the integral part played by the monitoring function in ensuring the overall effectiveness of a system of internal controls. Segregation of duties: separate the four basic functions of event processing: authorizing events, executing events, recording events, and safeguarding resources resulting from consummating events. Rotation of duties: policy that requires an employee to alternate jobs periodically. Forced vacations: policy that requires an employee to take leave from the job and substitutes another employee in his/her place. Fidelity bond: indemnifies a company in case it suffers losses from defalcations committed by its employees.