Effective Controls eliminate or remove the source/root cause of the risk. Or, controls are well documented, consistently implemented and reliable in addressing the source/root cause of risk. High degree of confidence from management in the protection provided by the controls.
Determining whether a particular internal control system is effective is a judgement resulting from an assessment of whether the five components - Control Environment, Risk Assessment, Control Activities, Information and Communication, and Monitoring - are present and functioning.
Examples of common corrective controls include disciplinary actions, blocking access or transactions when fraud is detected, fire-activated sprinkler systems, and software patches.
To write effective internal controls, you need to: Identify who will be responsible for monitoring in each case. Set clear expectations around the internal controls process. Communicate clearly regarding how often monitoring should be carried out.
The six principles of control activities are: 1) Establishment of responsibility, 2) Segregation of duties, 3) Documentation procedures, 4) Physical controls, 5) Independent internal verification, 6) Human resource controls.
You will learn the four pillars of management: planning, organizing, directing, and controlling, and learn how to apply them to turn wishes, dreams, and ideas into reality. You will become a better manager and leader.
Control procedures are the use of standard and consistent procedures in giving directions and scoring data in a testing situation in order to control all but the variables being examined.
General controls include software controls, physical hardware controls, computer oper- ations controls, data security controls, controls over the systems implementation process, and administrative controls.
A weakness in the control environment increases the risk that material errors (unintentional mistakes) and irregularities (intentional improprieties) could occur and go undetected.
In short, controls are essential for the unbiased, objective observation and measurement of the dependent variable in response to the experimental setup.
