TAILIEUCHUNG - Lecture Accounting information systems: Basic concepts and current issues (3rd edition): Chapter 3 - Robert L. Hurt

Chapter 3 - Internal controls. After studying this chapter you will be able to: Define internal control and explain its importance in the accounting information system, explain the basic purposes of internal control and its relationship to risk, describe and give examples of various kinds of risk exposures. | Chapter 3 Internal Controls Outline Expected outcomes Definition and purposes Risk exposures COSO framework Examples Risk / control matrix Expected outcomes Define internal control and explain its importance in the AIS. Explain the basic purposes of internal control and its relationship to risk. Describe and give examples of various kinds of risk exposures. Prepare a simple risk / control matrix. Summarize and explain the importance of COSO’s Internal Control—Integrated Framework. Critique existing internal control systems and design effective internal controls. Definition and purposes A process, effected by an entity’s board of directors, management and other personnel designed to provide reasonable assurance regarding the achievement of objectives in the following categories: effectiveness and efficiency of operations, reliability of financial reporting and compliance with applicable laws and regulations. Definition and purposes Important elements of the definition Process nature of internal control Widespread responsibility throughout the organization Use of the term “entity” to describe a broad range of organizations Reasonable assurance, which considers the cost / benefit constraint Definition and purposes Internal control has four main purposes. Many people focus on the first two only, but all four are important. Note the verbs used with each purpose. Safeguard assets. Ensure reliable financial reporting. Promote operating efficiency. Encourage compliance with management directives. I like to point out the meaning of each verb, comparing and contrasting them with one another. Risk exposures Many organizations determine their internal controls by thinking about their risk exposures. Brown’s taxonomy is one good way to think about risk. Four broad categories Financial risk Operational risk Strategic risk Hazard risk A given risk can “fit” into multiple categories. Risk exposures Financial risk Market risk Credit risk Liquidity risk Operational .

• Kế toán - Kiểm toán
• Accounting information systems
• Lecture Accounting information systems
• Information systems
• Internal controls
• Internal control purposes
• Risk exposures
• Accounting information systems
• Lecture Accounting information systems
• Hệ thống thông tin kế toán
• Accounting information
• Control information
• Information systems controls
• Information security
• System reliability
• Accounting system
• Systems development life cycle
• Systems design
• Value of information
• Business process
• Business process cycles
• Systems development
• Systems analysis
• Auditing computer
• Auditing process
• Privacy controls
• Processing integrity
• Availability controls
• Financial Accounting
• Principles of financial accounting
• Fundamental system principles
• Accounting systems
• Production cycle
• Human resources management
• General ledger
• AIS development strategies
• Reporting Systems
• Accounting information system
• AIS super system
• Computer accounting
• System security
• The accountant
• Information technology
• Documenting accounting information systems
• Data modeling
• Enterprise resource planning systems
• ERP systems
• Value chain
• Supply chain
• Decision structure
• Control frameworks
• COBIT framework
• Accounting cycle
• Transaction processing
• Internal control
• Control environment