CHAP 9: Control, security and audit

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CHAP 9: Control, security and audit by Mind Map: CHAP 9: Control, security and audit

1. Internal control system

1.1. Counter risk

1.2. Comply Law & Regulation

1.3. Maintain quality of reporting

1.4. Managed by manager

1.5. Achieve objectives and goals

1.6. Ensure

1.6.1. The security of the inventories

1.6.2. The accuracy of the accounting figure for inventories included in the financial statements

1.7. Typical control

1.7.1. Physical controls

1.7.2. Regular inventory counts

1.8. Implications of fraud

1.8.1. Financial

1.8.2. Misrepresentation

1.8.3. Reputation

1.9. Control environment

1.9.1. overall attitudes, awareness, and actions of management and actions of directors and management regarding internal controls and their importance in the entity

1.9.2. Encompass the management style, àn corporate culture and values shared by all employees

1.10. Control procedures

1.10.1. Those policies and procedures which are established to achieve the entity's specific objective

1.10.2. Classification

1.10.2.1. Preventive controls

1.10.2.1.1. Prevent errors or fraud occuring

1.10.2.2. Detective controls

1.10.2.2.1. Detect if any problems have occured

1.10.2.3. Corrective control

1.10.2.3.1. Address any problem that have occured

1.10.3. Financial control procedure

1.10.3.1. S

1.10.3.1.1. Segregation of duties

1.10.3.2. P

1.10.3.2.1. Physical

1.10.3.3. A

1.10.3.3.1. Authorisation and approval

1.10.3.4. M

1.10.3.4.1. Should provide control through analysis and review account

1.10.3.5. S

1.10.3.5.1. Ensures that all individuals are aware that their work will be checked, reducing the risk of falsification or errors

1.10.3.6. O

1.10.3.6.1. Organisation

1.10.3.7. A

1.10.3.7.1. Arithmetical and accounting

1.10.3.8. P

1.10.3.8.1. Personnel

2. Internal audit

2.1. Part of the internal control system

2.2. vary according to the organisation's objective

2.2.1. Review of the accounting & internal control systems

2.2.2. Review of the economy, efficiency and effectiveness of operations

2.2.3. Review of compliance

2.2.4. Monitoring risk managament

2.2.5. Special investigation

2.3. Reason

2.3.1. Add value

2.3.2. Improve an organisation's operations

2.4. Reporting to

2.4.1. The board of directors

2.4.2. Others charged with governance

2.5. Relating to

2.5.1. thr operations of the organisation

2.6. Relationship with the company

2.6.1. Employees of the organisation

3. External audit

3.1. Reason

3.1.1. Express an opinion on the financial statements

3.2. Reporting to

3.2.1. Shareholders

3.2.2. Members

3.3. Relating to

3.3.1. Financial statements

3.4. Relationship with the company

3.4.1. Independent of the company and its management