Internal control policies objective - Answers 1. operations affectedness and efficiency of operations
2. Reliability of financial reporting
3. Compliance compliance with applicable laws and regulations
Five elements of a comprehensive the framework of internal control - Answers Element one. Maintain a
favorable control environment element two. Assess control risk on an ongoing basis Element three.
Establish and maintain effective control related policies and procedures. Element four have adequate
communication to support internal control. Element five. Monitor the effectiveness of control related
policies and procedures as well as the resolution of potential problems identified by controls.
Control environment - Answers A policy on the control environment should make clear both the board
and management's support for internal control and commit the government to providing adequate
resources for internal control.
Assurances against control risk - Answers One segregation of duties. To security of assets and records.
Periodic reconciliation and verification. Authorization.
Responsibility - Answers The policy will direct the finance department specific points of responsibility,
test control to ensure their affectedness, for example auditors review and update control procedures in
response to deficiencies uncovered by testing for example auditors, maintain this is the type of control
such as capital capital assets and inventories and non-capitalize items, weigh the cost of controls against
the benefit they produce, develop written policies and procedures for internal control
Enterprise risk management - Answers A process affected by an entity's Board of Directors, management
and other personnel, applied and strategy setting and across the enterprise, designed to identify
potential events that may affect the entity, and manage risks to be within its risk appetite, to provide
reasonable assurance regarding the achievement of entity objectives
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