They involve preventative and detective activities. Control Activities: These pertain to the processes, policies, and other courses of action that maintain the integrity of internal controls and regulatory compliance.Second, facilitating the understanding of and commitment to steps to take can help employees do their job most effectively. First, clarity of purpose and roles can set the stage for successful internal controls. Information/Communication: Solid information and consistent communication are important on two fronts.By doing so, it can ensure, whether through system updates, adding employees, or necessary employee training, the continued ability of internal controls to function as needed. Monitor: A company must monitor its system of internal controls for ongoing viability.Based on the findings of such assessments, added focus and levels of control might be implemented to ensure the containment of risk or to watch for risk in related areas. Risk Assessment: A company must regularly assess and identify the potential for, or existence of, risk or loss.Management must put into place the internal systems and personnel to facilitate the goals of internal controls. A board of directors and management create this environment and lead by example. Control environment: A control environment establishes for all employees the importance of integrity and a commitment to revealing and rooting out improprieties, including fraud.
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