COMM 455 Chapter Notes - Chapter 7: Social Insurance Number, Information System, Root Mean Square
Document Summary
Chapter 7 understanding and testing the client"s system of controls. If effective more likely to achieve its strategic and operating objectives. Encompasses all elements of an org resources, systems, processes, culture, structure, tasks. Cas 315 - the process designed, implemented and maintained by those charged with governance, management and other personnel: to provide reasonable assurance about the achievement of the entity"s objectives. There are frameworks if agree = strong, disagree = weak. Controls (criteria of control board of cpa canada) Auditor: objectives of controls is to connect the auditor"s understanding of why the controls are important with the issues they are designed to prevent. Organizations: ensure errors in the processing of transactions do not occur: and if they do, errors are identified and rectified quickly. Human error that results in a breakdown in internal control. Ineffective understanding of the purpose of a control. Collusion by 2+ individuals to circumvent a control.
