Term
|
Definition
Public Company Accounting Oversight Board is used to inspect, investigate and enforce auditing standards of P.A.F's.
They set the auditing standards |
|
|
Term
| Requirements of Public Corporations |
|
Definition
1. Must have an internal auditing division.
2. CEO and CFO must certify internal control process and financial statements.
3. Section 404 states that internal controls must exist, audits must validate the internal controls and executives must attest to these controls.
4. Code of Ethics
5. Enable wistleblowers protection from employer. |
|
|
Term
|
Definition
| A set of procedures to accomplish an objective. |
|
|
Term
|
Definition
A process effected by the entity board of directors, management and other personnel designed to provide assurance regarding the achievement of objectives in effectiveness, reliability and compliance with laws and regulations.
(computer system checks at the end of the month double checking the sales figures.) |
|
|
Term
| COSO - Control Enviornment |
|
Definition
Sets the tone by the president
Integrity, ethical values authority
Foundation for other modules. |
|
|
Term
|
Definition
Process to identify and respond to business risk.
Estimate chances of risk happening
Define action to manage risk |
|
|
Term
| COSO - Information and Communication |
|
Definition
Pertinent information identified, captured and communicated in a timely manner.
Access to information
Flow of information that allows successfull control actions |
|
|
Term
| COSO - Control Activities |
|
Definition
Procedures that ensure management directives are carried out.
Examples include; Approvals, authorizations, recommendations, performance reviews segregation of duties and process controls. |
|
|
Term
|
Definition
| Assessment of control system performance overtime by management and supervisory activities and internal auditing activities. |
|
|
