Full Year Summary/Cheatsheet - Governance, Audit and Assurance 1

Objectives Risks and , ,
Controls
An objective to achieve
goal
is
management
·
a wants

1/ of information
· There are 1 main
categories
of
management
objectives : -




Integrity
- 2) Operational objectives
IOI) objectives
·

Integrity of information : -


Validity
Accuracy
-




-
Completeness




threaten
Objectives Assist

Rishsa Controls
Mitigate


Validity underlying
supported
information is
D
genuine-
②
authorised
documents
in terms of
management policy
an as

by sufficient -appropriate
B
source




~
& Transaction has occurred
actually 3 Components
② Requirements Pur in place by have been ma
management
③ Source documents totransaction available
relating
are




Accuracy and calculation of information is correct and recorded inhe cored accon a

① ② ③
↓ Amount
& Individual
13
calculation are
components of correc
- quantity
② the arithmetic of the calculation is correct components

③ Transaction is recorded in appropriate general ledger account




Completeness
· All transactions are recorded in the correc period and in
limely
a manner


D &
2 ⑤


& Altransactionsthathaveoccurredmeet Me FFRriveandarerecord ~
s
a
3 components

③ Transactions recorded
are without
delay

, IOI Risks
Different indicators of risk : Staff
lackin g competence
· -




-
Complex accounting transactions
-

tack of ethical behavior
-




Management incentive to misstate financial statements




Operational objectives ↓ Es fiep Cicicisi
of
Economy operations
the benefit of exceeds
Economy activity
its cost
·
an
-




Effectiveness of operations
intended planned
·
Activing achieves outcome : as




Efficiencyof Operation to achieve the desired ourcomes



Continuity
·

Enhiny is able to operate into foreseeable
future-going concern



Confidentiality
· the protection of sensitive information from inappropriate use or unauthorised personnel

Compliance with laws and Regulations
· All laws and regulations are complied with


Safeguarding ofAssets from theft:
damage : loss or misappropriation a




Internal Control
Control environment
Attitude directors and enforcement of
· of
Display communication ethical values
-




to
commitment competence + clear
organisational structure
-




Risk Assessment Process
and
·


-
Process for
Rish Governance
:
quantifying
identifying
committee
evaluating
risks to enable an effective response


Risk
Management Policy
-




-
Risk
register cranks risks
-
Internal and it

, Information Systems
procedures recordspur in place to financial and non-financial information
+
manageReport
·



·
Iniliave/execute to Recorde Process =


·
Includes : Revenue /Receipt
cycle
-

Purchase and Production cycle
Payroll
-




· The
Monitoring assessment of the effectiveness of the
design and operation of internal

and the of
Control measures
actioning corrective actions where applicable



internal andit

&Board of
X
Management t

supervisors &
directors

Computerised
Manual + Automated controls
Controls
· to mitigate risks in a computerised environments
Manual-performed by human i Automated-performed : It dependant manual
by system performed controls
-




Stages of a transaction both
by
Input to Process to Output

-
Masterfile Amendment
-


to change/correct existing dat


Categories of IT controls

· General IT controls - IT environment as a whole
Support effective
functioning of all
cycles software and
-


-


business processes


· Application controls -
Specific to
cycle , software or business processes
-

specific to procedures that initiate , record , process and report
transactions
Classification of IT controls
· Preventative

· Detective and corrective