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23-May-2020 20:14
They were thinking not only of protecting stakeholders and shielding their companies from lawsuits but of developing better information about company operations in order to avoid making bad decisions.
They include a strengthened control environment; more reliable documentation; increased audit committee involvement; better, less burdensome compliance with other statutory regimes; more standardized processes for IT and other functions; reduced complexity of organizational processes; better internal controls within partner companies; and more effective use of both automated and manual controls.But what exactly is a control structure composed of?A control is a practice established to help ensure that business processes are carried out consistently, safely, with the proper authorization, and in the manner prescribed.In others, a high sampling rate gave no clearer a picture of certain controls’ efficacy than a lower rate would have done.
To reduce the compliance burden, some companies now resort to “controls rationalization,” which involves assessing which activities are most susceptible to error or abuse and whether they could be responsible for a material misstatement.Monthly reconciliation of cash accounts, for example, is undertaken to ferret out such conditions.