Overview literature & typologies ICAIS 2014-2015 – Focus points based
on old exams
Week 1
Accounting information system (AIS)
3 functions:
o Collecting and storing data
o Transforming data into information
o Providing adequate controls to safeguard the assets and data
5 components:
o People
o Procedures
o Data
o Software
o IT infrastructure
Database = set of interrelated, centrally coordinated files
Coso:
Internal control = process, effected by an entities board of directors,
management & other personnel, designed to provide reasonable assurance
regarding the achievement of objectives relating to operations, reporting &
compliance.
Objectives:
1) Operations: effective & efficient
2) Reporting: reliability, timeliness, transparency, laws applied/followed
3) Compliance: adhere to laws and regulation
4) Provide adequate internal controls to safeguard companies assets
Components:
1) Control environment: set of standards, processes & structures that provide
basis for internal control across the organisation
2) Risk assessment: external + internal risks. Possibility that an event occurs +
adversely affect objectives
3) Control activities: actions established through policies & procedures that help
ensure that management’s directives to mitigate risks are carried out
4) Information & communication: from internal & external sources. To support the
functioning of other IC components
5) Monitoring activities: to ensure the 5 components + controls to effect the
principles are present & functioning.
Vaassen:
Typology: provide a framework to classify organisations; developing &
evaluating internal control systems for a combination of cycles which can lead to
different controls than for the individual cycles
Completeness of revenues -> authorization/control of costs
(See last pages for the work out of the individual typologies)
1
on old exams
Week 1
Accounting information system (AIS)
3 functions:
o Collecting and storing data
o Transforming data into information
o Providing adequate controls to safeguard the assets and data
5 components:
o People
o Procedures
o Data
o Software
o IT infrastructure
Database = set of interrelated, centrally coordinated files
Coso:
Internal control = process, effected by an entities board of directors,
management & other personnel, designed to provide reasonable assurance
regarding the achievement of objectives relating to operations, reporting &
compliance.
Objectives:
1) Operations: effective & efficient
2) Reporting: reliability, timeliness, transparency, laws applied/followed
3) Compliance: adhere to laws and regulation
4) Provide adequate internal controls to safeguard companies assets
Components:
1) Control environment: set of standards, processes & structures that provide
basis for internal control across the organisation
2) Risk assessment: external + internal risks. Possibility that an event occurs +
adversely affect objectives
3) Control activities: actions established through policies & procedures that help
ensure that management’s directives to mitigate risks are carried out
4) Information & communication: from internal & external sources. To support the
functioning of other IC components
5) Monitoring activities: to ensure the 5 components + controls to effect the
principles are present & functioning.
Vaassen:
Typology: provide a framework to classify organisations; developing &
evaluating internal control systems for a combination of cycles which can lead to
different controls than for the individual cycles
Completeness of revenues -> authorization/control of costs
(See last pages for the work out of the individual typologies)
1
