Term
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Definition
| Probability of a threat occurrence |
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Term
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Definition
| Potential dollar loss from the risk |
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Term
| How to calculate expected loss: |
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Definition
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Term
| Define Information and Communication: |
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Definition
| Methods and records used to record, process, and summarize a company's transactions |
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Term
| Information and communication are: |
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Definition
| Document accounting procedures in accounting procedure manuals to promote uniformity, and then also communicate the roles of employees in the company. |
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Term
| Define monitoring performance: |
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Definition
| assessing the quality of internal controls, and taking corrective measures. |
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Term
| What are key methods of monitoring performance? |
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Definition
| Effective supervision, responsibility reporting, internal and external audits. |
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Term
| What does the 2004 COSO focus on? |
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Definition
| Enterprise Risk Management |
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Term
| What are all the parts of the 2004 COSO? |
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Definition
| All the 5 1994 COSO and Objective setting, Event Identification, Risk response |
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Term
second part of the 2004 COSO is?
And what does it do. |
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Definition
Event Identification
Deals with uncertainties, some things are beyond the control of management.
External Factors: economic business, environment, political social.
Internal Factors: Management choices, like infrastructure, personnel, process, and technology |
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Term
| 3rd 2004 COSO and explain it. |
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Definition
| Risk response: risk avoidance, reduction of risk. Management identifies external risks and does there part to try and reduce the internal and external factors associated. |
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Term
| What are the three control procedures? |
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Definition
| Preventive controls, detective controls, corrective controls |
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Term
| Define preventive controls: |
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Definition
Prevent errors and problems before they happen.
Through: Authentication/Authorization controls (passwords), Employee training, Physical address controls (locks) |
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Term
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Definition
| Needed to discover errors and problems as soon as they arise |
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Term
| Define corrective controls: |
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Definition
| Remedy the problems discovered through detective controls. |
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