Term
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Definition
| involves the process for ensuring that behaviors and decisions conform to an organization's standards and legal requirements, including its rules, policies, procedures, and goals |
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Term
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Definition
| mechanisms intended to reduce the likelihood of an unwanted event and thereby minimize the need for corrective action |
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Term
| type of preventative control |
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Definition
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Term
| type of preventative control |
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Definition
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Term
| type of preventative control |
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Definition
| recruitment and selection procedures |
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Term
| type of preventative control |
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Definition
| training and development programs |
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Term
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Definition
| mechanisms intended to reduce or eliminate unwanted behaviors or results and thereby return the situation to conformity with the organization's regulations and standards |
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Term
| type of corrective control |
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Definition
| direct supervision and feedback |
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Term
| type of corrective control |
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Definition
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Term
| type of corrective control |
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Definition
| procedures for reporting misconduct |
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Term
| type of corrective control |
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Definition
| monthly or even daily financial reports |
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Term
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Definition
| expressed as pressures from sources or entities on organizations to maintain or change their behaviors and decisions |
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Term
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Definition
| comprise the formal policies, rules, procedures, and records for preventing or correcting deviations from plans and for achieving desired goals |
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Term
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Definition
| comprise the norms and values that group or team members share through rewards and punishments |
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Term
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Definition
| comprise the guiding mechanisms that operate consciously and unconsciously within each person |
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Term
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Definition
impartial and cannot be manipulated by emloyees for personal gain (strategic goal) |
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Term
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Definition
encompasses all of the behaviors and goals desired by the organization - balance quantitative and qualitative goals (strategic goal) |
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Term
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Definition
provide information when it is needed most (strategic goal) |
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Term
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Definition
| a process - effected by an organization's board of directors, management, and other personnel - designed to provide reasonable assurance regarding the achievment of goals in the various departments |
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Term
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Definition
| needs to be coordinated among components, forming an integrated system that adjusts to changing situations |
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Term
| limitations of internal control |
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Definition
even effective _______ _______ can only help an organization achieve its goals - cannot change a bad manager into a good one - external influences may be beyond management's control - judgments may be faulty - may be circumvented by collusion of two or more employees - management can override the control system |
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Term
| corrective control module |
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Definition
| process for detecting and eliminating or reducing deviations from an organization's established standards |
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Term
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Definition
| involve the extensive use of rules and procedures, top-down authority, tightly written job descriptions, and other formal method for preventing and correcting deviations from desired behaviors and results |
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Term
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Definition
| involve the use of flexible authority, relatively loose job descriptions, individual self-controls, and other informal methods for preventing and correcting deviations from desired behaviors and results |
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Term
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Definition
| the collection and evaluation of data related to sales, prices, costs, and profits for guiding decisions and evaluating results |
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Term
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Definition
| mechanisms for preventing or correcting the misuse and misallocation of resources, especially monetary resources |
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Term
| comparative financial control |
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Definition
| evaluation of a firm's financial condition for two or more time periods |
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Term
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Definition
| selecting two significant figures (or a combination of a number of figures), expressing their relationship as a fraction or percent, and comparing the value for two or more periods of time |
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Term
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Definition
| the process of monitoring, comparing, and evaluating actual expenditure levels in various categories in relation to budgeted amounts, and making changes as needed during the budget time period |
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Term
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Definition
| the use of self-regulating devices and processes that operate independently of people |
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Term
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Definition
| the pattern of relations and controls between the stockholders, the board of directors, and the top management of the company |
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Term
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Definition
| set by the organization through policies, procedures, practices, and guidelines |
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Term
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Definition
| makes sure that expectations are understood throughout the organization, and that there is proper training |
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Term
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Definition
| holds people accountable for meeting the expectations that have been set |
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Term
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Definition
| a document stating the rules of internal governance for a corporation as adopted by its board of directors |
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Term
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Definition
| the public dissemination of important market-influencing information |
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Term
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Definition
| a document sent by publicly listed corporations to their shareholders that provides material information on corporate matters subject to vote at the general shareholders' meeting |
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Term
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Definition
| requires companies to develop and publish internal processes so that outsiders can confirm the existence of appropriate controls |
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Term
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Definition
| companies must report financial results and material changes in corporate financial condition or operations "on a rapid and current basis" |
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Term
| fudiciary responsibility and control |
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Definition
| periodic review to ensure that corporate resources are used only for appropriate business purposes |
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