ADMS 4515 Lecture Notes - Lecture 4: Internal Control

• School: York University
• Department: Administrative Studies
• Course: ADMS 4515
• Professor: Anastasios Chatzidimos

Document Summary

Bp = set of activities connected to each other in aim of achieving an objective. Unique activities requiring complex sequencing, ending with intellectual property. Internal auditors need to understand the firm business model and how its business processes are structured to achieved desired objectives. Need to update on strategy yearly (done by) Bottom-up approach = processes at activity level overall processes. First objectives then processes but then needs to evaluate potential business risks. Risks are assessed based on impact and likelihood. Transferring = sharing (buying crop insurance for poor weather) The(cid:374) deter(cid:373)i(cid:374)e if there is a(cid:374) asso(cid:272)iatio(cid:374) (cid:271)et(cid:449)ee(cid:374) risks a(cid:374)d pro(cid:272)esses. Processes with several key links to risks may need comprehensive auditing. Vice-versa, provide assurance regarding the risk as a whole. After the factors have been identified three other decisions must be made before implementing the model: 1) the scale used to assess each factor must be set.