1. IDENTIFYING RISKS AND CONTROLS IN BUSINESS PROCESS

2. Objectives of Internal Control (SAS No. 94)
A process … designed to provide reasonable assurance regarding the objectives :
Reliability of financial reporting
Effectiveness and efficiency of operations
Compliance with applicable laws and regulations

3. Elements of Internal Control
1. Control environment
2. Risk assessment
3. Control activities
Information and communication
Monitoring

4. Elements of Internal Control
1. Control environment
2. Risk assessment
3. Control activities
Information and communication
Monitoring

5. Integrity, ethical values, Management philosophy and operating style, and organizational structure influences the control environment.

6. Elements of Internal Control
1. Control environment
2. Risk assessment
3. Control activities
Information and communication
Monitoring

7. Once risks are identified, they can be analyzed to estimate their significance, to assess their likelihood of occurring, and to determine actions that will minimize them.

8. Elements of Internal Control
1. Control environment
2. Risk assessment
3. Control activities
Information and communication
Monitoring

9. Control Activities Performance reviews Segregation of duties
Application controls
General controls

10. Elements of Internal Control
1. Control environment
2. Risk assessment
3. Control procedures
Information and communication
Monitoring

11. The company’s information system is a collection of procedures (automated and manual and records established to initiate, record, process, and report the events in an entity’s process
Communication involves providing an understanding of individual roles and responsibilities

12. Elements of Internal Control
1. Control environment
2. Risk assessment
3. Control procedures
Information and communication
Monitoring

13. Objectives and Risk Execution 2. Information System
3. Asset protection
4. Performance

14. Objectives and Risk Execution 2. Information System
3. Asset protection
4. Performance

15. Objectives and Risk Execution 2. Information System
3. Asset protection
4. Performance
Proper execution of transactions in the revenue and acquisition cycles

16. Objectives and Risk Execution 2. Information System
3. Asset protection
4. Performance
Proper execution of transactions in the revenue and acquisition cycles
Risk of not achieving execution objectives

17. Objectives and Risk Execution 2. Information System
3. Asset protection
4. Performance

18. Objectives and Risk Execution 2. Information System
3. Asset protection
4. Performance
Proper recording, updating, and reporting of data in an information system

19. Objectives and Risk Execution 2. Information System
3. Asset protection
4. Performance
Proper recording, updating, and reporting of data in an information system
Risk of not achieving information system objectives

20. Objectives and Risk Execution 2. Information System
3. Asset protection
4. Performance

21. Objectives and Risk Execution 2. Information System
3. Asset protection
4. Performance
Safeguarding of assets

22. Objectives and Risk Execution 2. Information System
3. Asset protection
4. Performance
Safeguarding of assets
Risk of loss or theft of assets

23. Objectives and Risk Execution 2. Information System
3. Asset protection
4. Performance

24. Objectives and Risk Execution 2. Information System
3. Asset protection
4. Performance
Favorable performance of an organization,
Person, department, product, or service

25. Objectives and Risk Execution 2. Information System
3. Asset protection
4. Performance
Favorable performance of an organization,
Person, department, product, or service
Risk of not achieving
performance objectives