Study Guides (238,529)
Canada (115,195)
York University (9,816)
ADMS 4552 (7)
N A (6)

Chapter 9 notes.docx

3 Pages
Unlock Document

York University
Administrative Studies
ADMS 4552

ADMS 4552 Chapter 9 notes COSO Components of Internal control - Committee of sponsoring organizations of the Treadway Commission - 5 components of internal control that management designs and implements to provide reasonable assurance that its control objectives will be met 1. Control environment 2. Risk assessment 3. Control activities 4. Information and communication 5. Monitoring Control Environment (the umbrella) - Attitude of top management - Corporate governance - Actions, policies, and procedures that reflect the overall attitudes of top management, the directors, and the owners of an entity about control and its importance to the entity - Implementation of attitudes and strategies - Most important subcomponents: o Active integrity and promotion of ethical values o Commitment to competence o Board of directors or audit committee participation  Audit committee - maintaining ongoing communication with both external and internal auditors, including the approval of audit and non-audit services done by auditors for public companies, must be independent o Management philosophy and operating style o Organizational structure o Human resources policies and practices o Methods of assigning authority and responsibility o Management control methods o Systems development methodology o Management reaction to external influences o Internal audit Risk Assessment - Management’s identification and analysis of risks relevant to the preparation of financial statements in conformity with GAAP - Determine how management identifies risk relevant to financial reporting, evaluates its significance and likelihood of occurrence and decides the actions needed to address the risks - Management assess risks as a part of designing and operating internal controls to minimize errors and fraud - Auditors assess risks to decide evidence needed in an audit Control Activities - Application controls - policies and procedures, in addition to those in the other parts to help ensure risks are addressed in meeting the goals of the company - Special application controls in every cycle: 1. Adequate segregation of duties 2. Proper authorization of transactions and activities 3. Adequate documents and records 4. Physical and logical control o
More Less

Related notes for ADMS 4552

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.