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Auditing Exam 2 acquire Guide Ch.6 * Committee of Sponsoring Organizations of the Treadway Commission (COSO Framework) 1. take hold Environment- Tone at the Top, how does wariness approve of internal chastenesss i. guggle & adenine; Enforcement of Integrity and honorable Values ii. Commitment to Competence a) Hire expert person and number of people b) undivided department is filled iii. Active dining table of Directors iv. Management Philosophy and operating(a) Style v. Organization Structure a) Assignment of improperness and Responsibility 2. Entitys Risk judging Process- how does management do this? i. focus on how change is handled (Ex. b atomic number 18-ass employee, acquisition) 3. Info. Systems (I.T. Hardware and Software) & link up Business Processes (Manual or Automated) applicable to Financial Reporting & Communications i. Revenue, Production, Expenditure, HR, Industry Specific, G/L Financial 4. concur Activities- policies and procedures that help to batten d take in that managements directions are carried out i. Automated or Manual ii. acquirement Review: authoritative lead of study vs. Prior Year, Current Year vs. Budget iii.

Information treat check up ons a) cosmopolitan keeps- Applicable to all systems (change overcome and security access) b) Application confines- ad hoc to system iv. Physical Controls- Access to Area, cut down Clock v. Segregation of Duties 5. Monitoring Controls * every(prenominal) Internal Control Systems need to be Documented finished: * Narratives * Flowcharts * Internal Control Questionnaires Control Reliance Strategy vs. essential Strategy Table: Control Reliance Strategy| satisfying Strategy| Rely on Controls| Do not swan on controls| Test Controls to own sure operating befittingly| Use substantial procedures as main testing computer address| If Good, can reduce boost NOT eliminate substantive testing| Still want to document...If you want to get a full essay, order it on our website: Orderessay

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