(41) In the financial services sector, the use of the “three lines of defense” includes the business unit (BU), a risk management program, and ______________. (42) Which security policy framework focuses on concepts, practices, and processes for managing and delivering IT services? (43) ___________ refers to the degree of risk an organization is willing to accept. (44) To which sector does the Gramm-Leach-Bliley Act apply
We are primarily concerned about controls over the reliability of financial reporting and the controls over classes of transactions, as the accuracy of the accounting system outputs depends on the accuracy of inputs and processing. We have significant responsibility for the discovery of material fraudulent financial reporting and misappropriation of assets, and must perform audit procedures to identify noncompliance with laws and regulations that may have a material effect on the financial statements. Internal controls, if properly designed and implemented, can be effective in preventing and detecting fraud. Therefore, we are concerned with Apollo’s internal control over the safeguarding of assets and compliance with laws and regulations if they affect the fairness of the financial statements. Although we are less concerned with controls that affect the efficiency and effectiveness of the company’s operations, we will pay attention to controls affecting internal management information, which is an important source of evidence that helps to determine whether financial statements are presented
Reactive change occurs due to outside pressures on the business these may include a perceived threat to the company or a new opportunity arises out of the blue. Proactive change is when the business actively seeks to modify its practises or work place environment. Proactive change is normally more controllably because the business has been able to plan it. Reactive change can be a bit more chaotic until the business has been able to adapt to the external force. Internal forces can be the business getting new equipment or a restructuring of personal and external forces are changes in one or more
1. What are the key risks that Yorktown is currently facing? Explain how those risks will affect financial statement risk (FSR), explain the impact ofgFSR (ie. is it pervasive or does it impact specific accounts and assertions) the and how the risks will impact the audit. (Use the table below to answer your question).
The Boise location will inherently have certain risks that will come with this type of business model and the related technology that supports the process. In order to properly manage the expected risks we will need to properly categorize the risks into quantitative and qualitative manageable pieces. McBride Financial had decided to use cost as the primary factor in measuring the risk thus a quantitative approach will be used. Three categories were chosen to represent the risks, they were: probability, impact and priority. The probability was measured from high to low with ratings set to high, med-high, medium, med-low, and low.
Evaluations of this information provides insight regarding a company’s ability to productively useeconomic resources as well as providing a basis for further shareholder assessments of prospective risks and returns. Based on this, one may conclude it is an extraordinarily basic yet important element of financial infrastructure. These evaluations consist of three reports that provide a company options for communicating the state of the internal control structure. The options can be evaluated under established criteria commonly found in Committee of Sponsoring Organizations (COSO), Control Objectives for Information and related Technology (COBIT), and International Organization for Standardization (ISO) 17799/27002
Adhering to compliance is crucial to prevent companies from failing and taking huge financial loses. McBride must implement a system of audit compliance committees that will help mitigate non-compliance. Audit compliance committees will review financial documents, including receipts, documents, stocks, trades, shares, investment numbers and any other financial documentation. Non-compliance includes behavior and unethical actions performed by senior management that will be audited and monitored by the compliance committee. The committee will consist of internal and external auditors who will each have a part in ensuring McBride continues to perform and service the needs of customers
The final account that is on the balance sheet under the net assets and fund balances of the balance sheet would be the unrestricted net assets account. This account can be a target for the organization for an intentional misstatement because they could show that they have more assets that are unrestricted when realistically they could be restricted. Being able to show the difference would involve a detailed inspection. The auditor should do analytical procedures and substantive tests in order to detect these
Financial Statements ACC/280 May 01, 2012 Edward Vargas Financial Statements Accounting is extremely important by monitoring the functions of the companies, and allowing them to make appropriate financial transactions and decisions. Some areas of accounting can seem confusing and difficult but in the end the outcome is clear and concise. There are two basic forms of accounting known as; financial and managerial accounting. Financial accounting responsibilities are to follow the General Accepted Accounting Principles (GAAP) that is regulations for investor relations, creditors, and taxation purposes, whereas managerial accounting is for internal evaluation. There are different functions and categories that accounting
Short Answer Question Jerry Gadson III November 18, 2014 Diane Burgess CMGT/410 What is project risk management and what value does risk management provide to a project? Risk management is the method of identifying risks, then classifying and mitigating the discovered risks. The risks are ranked according to their potential to create problems both quantitatively and qualitatively. Big companies such as government agencies and corporations set risk management guidelines so that a process is ready for use on any new proposal. Quantitative risks analysis gives a numeric value for the severity of a risk.