Internal Control: Definitions and Components, Quizzes of Auditing

Download Internal Control: Definitions and Components and more Quizzes Auditing in PDF only on Docsity! TERM 1 Control Environment (#1) DEFINITION 1 The organization demonstrates a commitment to integrity and ethical values TERM 2 Control Environment (#2) DEFINITION 2 The board of directorsdemonstrates independence from management and exercises oversight of the development and performance of internal control TERM 3 Control Environment (#3) DEFINITION 3 Management establishes, with board oversight, structures, reporting lines, and appropriate authorities and responsibilities in the pursuit of objectives TERM 4 Control Environment (#4) DEFINITION 4 The organization demonstrates a commitment to attract, develop, and retain competent individuals in alignment with objectives TERM 5 Control Environment (#5) DEFINITION 5 The organization holds individuals accountable for their internal control responsibilities in pursuit of objectives TERM 6 Risk Assessment (#6) DEFINITION 6 Specifies objectives with sufficient clarity to enable the identification and assessment of risks relating to objectives TERM 7 Risk assessment (#7) DEFINITION 7 Identifies risks to the achievement of its objectives across the entity and analyzes risks as a basis for determining how the risks should be managed TERM 8 Risk assessment (#8) DEFINITION 8 Considers the potential for fraud in assessing risks to the achievement of objectives TERM 9 Risk Assessment(#9) DEFINITION 9 Identifies and assesses changes that could significantly impact the system of internal control TERM 10 Control Activities (#10) DEFINITION 10 Selects and develops control activities that contribute to the mitigation of risks to the achievement of objectives to acceptable levels