Understanding IT Risks and Internal Controls
Most entities today use information technology (IT) to manage, control, and report on at least some of their activities. A central support team often manages IT operations that ensure the day-to-day users (staff) have appropriate access to the hardware, software, and applications required to perform their responsibilities. In smaller entities, IT management may be the […]
Internal Control Components: Monitoring
Monitoring assesses the effectiveness of the internal control’s performance over time. The objective is to ensure that the controls are working properly and, if not, to take necessary corrective actions. Monitoring provides feedback to management on whether the internal control system they have designed to mitigate risks is: Management accomplishes the monitoring of controls through […]
Internal Control Components: Control Activities
Control activities are the policies and procedures that help ensure management’s directives are carried out. Examples include controls to ensure that goods are not shipped to bad credit risk or that only authorised purchases are made. 控制活动是有助于确保管理层的指令得到执行的政策和程序。 例如，确保货物不被运往不良信用风险的控制，或只进行授权的采购。 These controls address risks that, if not mitigated, would threaten the achievement of the entity’s objectives. Control […]
