ACCT2000 Chapter Notes - Chapter 7: Public Company Accounting Oversight Board, Foreign Corrupt Practices Act, Personal Boundaries
11 Oct 2018
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Week six control and accounting information systems. A threat/event is any potential adverse occurrence or unwanted event that could injure the ais or the organisation. Exposure/impact is the potential dollar loss should a particular threat become a reality. Likelihood is the probability that a threat will come to pass. Internal controls are the processes and procedures implemented to provide reasonable assurance that control objectives are met. Preventative controls are controls that deter problems before they arise. Detective controls are controls designed to discover control problems that were not prevented. Corrective controls are controls that identify and correct problems as well as correct and recover from the resulting errors. Ge(cid:374)eral (cid:272)o(cid:374)trols are (cid:272)o(cid:374)trols desig(cid:374)ed to (cid:373)ake sure a(cid:374) orga(cid:374)isatio(cid:374)"s i(cid:374)for(cid:373)atio(cid:374) s(cid:455)ste(cid:373) a(cid:374)d control environment is stable and well managed. Application controls are controls that prevent, detect and correct errors and fraud in application programs. There are four levers of control that allow management to reconcile the conflict between creativity and controls.
