a. Selection. - unqualified decision makers or inadequate information
b. Availability. - hardware, software failure, unschedule maintenance, disasters, virus, hack
c. Access. - personal devices, unsecured networks, lack of unauthentication
d. Confidentiality and privacy.- open access to networks, software,hardware & databases
Control Environment. Control environment sets the tone of the organization, which influences the control consciousness of its people. This foundation provides discipline and structure upon which all other components of internal control are built. The control environment includes integrity and ethical behavior of the people, their commitment to competence, the board of directors and audit committee participation, management's philosophy and operating style, organization
structure, assignment of authority and responsibility, and human resource policies and practices.
Risk Assessment. Risk assessment identifies and analyzes the relevant risks associated with the organization achieving its objectives. Risk assessment forms the basis for determining what risks need to be controlled and the controls required to manage them.
Control Activities. Control activities are the policies and procedures the organization uses to ensure that necessary actions are taken to minimize risks associated with achieving its objectives. Controls have various objectives and may be applied at various organizational and functional levels.
Information system. The information system consists of the methods and records used to record, maintain, and report the events of an entity, as well as to maintain accountability for the related assets, liabilities, and equity. The quality of the system-generated information affects management's ability to make appropriate decisions in managing and controlling the entity's activities and to prepare reliable financial reports.
Monitoring. Monitoring is the process of assessing the quality of internal control performance over time. This is extremely important as most organizations are constantly changing their operations to meet new demands in the market place and capitalize on new opportunities. Monitoring involves assessing the design and operation of controls on a timely basis and taking corrective actions as needed.
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