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BEC_Mod 41

By Jacqueline Cooper,2014-04-22 15:21
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BEC_Mod 41

    目录

Module 41 CORPORATE GOVERANCE, INTERNAL CONTROL, ............................................................... 1

    AND ENTERPRISE RISK MANAGEMENT ....................................................................................................... 1

    A. Corporate Governance ........................................................................................................................... 1

    B. Internal Controls ...................................................................................................................................... 2

    C. Enterprise Risk Management ................................................................................................................ 3

    BEC Module 41

    Module 41 CORPORATE GOVERANCE, INTERNAL CONTROL,

    AND ENTERPRISE RISK MANAGEMENT

    A. Corporate Governance

    1. Forms of Executive Compensation

    a. Base salary and bonuses

    b. Stock options

    c. Stock grants

    (1) Restricted stock

    (2) Performance shares

    d. Executive perquisites (perks)

    e. The best forms of executive compensation

    2. Monitoring Devices

    a. Boards of directors

    Responsibilities:

    (1) Hiring and, in some cases, firing top management

    (2) Voting on major operating and financial proposals

    (3) Providing advice to management

    (4) Ensuring accurate financial reporting by the corporation

    Guidelines:

    (1) The nominating/corporate governance committee

    (2) The audit committee (critical role)

    (3) The compensation committee

    b. New York Stock Exchange (NYSE) & NASDAQ Rules Related to Corporate

    Governance and Director Independence

    c. Internal auditors

    (1) Risk management activities

    (2) Internal control

    (3) Other governance processes

    Should report - functionally to audit committee

     administratively to the CEO

    d. External auditors

    (1) Form and express an opinion

    (2) Doesnt relieve management or audit committee

    (3) Planned scope and timing

    (4) Significant audit findings

    (a) Auditors views of qualitative aspects of significant accounting practices

    (b) Significant difficulties encountered during the audit

    (c) Disagreements with management

    (d) Other findings or issues which the auditor believes are significant and

    relevant

    (e) Uncorrected misstatements other than those that are trivial

    (5) Material corrected misstatements

    (6) Significant issues discussed with management

    (7) Auditors views about significant matters on

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    BEC Module 41

    (8) Written representations the auditor is requesting

    (9) Significant deficiencies and material weaknesses in internal control

    e. Investment banks and securities analysts f. Creditors

    g. Credit rating agencies

    h. Attorneys

    i. The Securities and Exchange Commission (SEC)

    (1) Division of Corporate Finance

    (2) Division of Enforcement

    (3) The Office of the Chief Accountant j. The Internal Revenue Service (IRS) k. Corporate takeovers

    l. Shareholder activism

    B. Internal Controls

    1. The Control Environment

    a. Integrity and ethical value

    b. Commitment to competence

    c. Board of directors or audit committee d. Managements philosophy and operating style e. Organizational structure

    f. Assignment of authority and responsibility g. Human resource policies and procedures 2. Risk Assessment

    3. Control Activities

    4. Information and Communication

    5. Monitoring

    6. Controls over Business Processes

    Sales & Collections Business Process Acquisitions & Payments Process

    a. Additional Controls over Inventories

    (1) Perpetual inventory records for large dollar items

    (2)

    (3) Adequate standard cost system

    (4) Physical control against theft

    (5) Written inventory requisitions used

    (6) Proper authorization of purchases and use of prenumbered purchase orders

    b. Control over Payrolls

    (1) Segregate: Timekeeping

     Payroll Preparation

     Personnel

     Paycheck Distribution

    (2) Time clocks used where possible

    (3) Job time tickets reconciled to time clock cards

    (4) Time clock card approved by supervisor

    (5) Treasure signs paychecks

    (6)

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    BEC Module 41

    (7) Personnel department promptly send termination ………

    c. Controls over Fixed Assets

    (1) Asset acquisitions are properly approved

    (2) Detailed records

    (3) Written policies

    (4) Depreciation

    (5) Retirements approved

    (6) Prevent theft

    (7) Periodic physical inspection

    7. Change Control Processes

    C. Enterprise Risk Management

    1. Components of ERM

    a. Internal Environment

    b. Objective Setting

    (1) Operations objectives

    (2) Reporting objectives

    (3) Compliance objective

    c. Event Identification

    (1) Event inventories

    (2) Internal analysis

    (3) Escalation or threshold triggers

    (4) Facilitate workshops or interviews

    (5) Process flow analysis

    (6) Leading event indicators

    (7) Loss event data methodologies d. Risk Assessment

    e. Risk Response

    (1) Avoidance

    (2) Reduction

    (3) Sharing

    (4) Acceptance

    f. Control Activities

    g. Information and Communication h. Monitoring

    2. Limitations of ERM

    a. Risk

    b. ERM provides

    c. ERM cannot provide

    (1) The effectiveness of ERM is

    (2) Well-designed ERM can break down.

    (3) Collusion among two or more individuals can result in ERM failures

    (4) ERM systems can never be perfect due to cost-benefit constraints

    (5) ERM is subject to management override

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BEC Module 42

    Module 42 INFORMATION TECHNOLOGY

    A. Information Systems within a Business 1. Definition

    2. Manual vs. IT Systems

    3. General Types of Computer Systems 4. Systems Design and Process Improvement

B. Characteristics of IT Systems General

    1. Types of Computers, Hardware and Software 2. Methods of Processing

    3. Methods of Data Structure

    4.

    C. Characteristics of IT Systems Specific

    1. Types of Networks

    2. Local Area Networks

    3. End-User Computing

    4. Electronic Commerce

    5. Telecommunications

    6. Computer Service Organizations (Bureaus, Centers) D. Effect of IT on Internal Control

    1. Principles of a Reliable System and Examples of Overall Risks

    2. Control Environment

    3. Risk Assessment

    4. Information and Communication

    5. Monitoring

    6. Control Activities Overall

    7. Computer General Control Activities 8. Computer Application Control Activities Programmed Control Activities 9. Application Controls Manual Follow-Up of Computer Exception Reports

    10. User Control Activities

    11. Disaster Recovery and Business Continuity E. Flowcharting

    1. Common Flowcharting Symbols

    2. Types and Definitions

    3. Other Documentation Charting Techniques

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