RSM427H1 Chapter Notes - Chapter 6: Subledger, Usability, Transaction Processing
Document Summary
Driving a business requires controls to ensure that business goals are met efficiently. Ic: an established instruction, procedure, or tool to mitigate an ir. Ic ensure that information is reliable (though they are optional). Plan of internal controls: correlation of ic to provide sufficient redundancy to prevent risks from being ignored while avoiding significant duplication of effort. General control: one that is applied to an environment or multiple applications. Application control: mitigates the risk of only one system application: needed because applications differ in risks/environments. General controls should be applied until the cost of an additional one exceeds the benefits if the residual risk > tolerable, use application controls to reduce it further. Application controls should be documented in policies, standard, procedures, system user requirements, design narratives, entity relationship diagrams, system flowcharts, and programs: a list of all the controls for a specific system should also be created.
