tailieunhanh - Lecture Accounting information systems: Chapter 10 - Richardson, Chang, Smith

Chapter 10 - Accounting information systems and internal controls. After reading this chapter, you should be able to: Explain essential control concepts and why a code of ethics and internal controls are important, explain the objectives and components of the COSO internal control framework and the COSO enterprise risk management framework,. | Chapter 10 Accounting Information Systems and Internal Controls Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Learning Objectives LO#1 Explain essential control concepts and why a code of ethics and internal controls are important. LO#2 Explain the objectives and components of the COSO internal control framework and the COSO enterprise risk management framework. LO#3 Describe the overall COBIT framework and its implications for IT governance. LO#4 Describe other governance frameworks related to information systems management and security. 10-2 Ethics, Sarbanes Oxley Act 2002 and Corporate Governance The Need for a Code of Ethics Ethical behavior prompted by a code of ethics can be considered a form of internal control. Employees with different culture backgrounds are likely to have different values Many professional associations have developed codes of ethics to assist professionals in selecting among decisions that are not clearly right or wrong. 10-3 LO# 1 Sarbanes Oxley Act 2002 SOX requires public companies registered with the SEC and their auditors to annually assess and report on the design and effectiveness of internal control over financial reporting. Established the Public Company Accounting Oversight Board (PCAOB) to provide independent oversight of public accounting firms. PCAOB Auditing Standard No. 5 (AS 5) encourages auditors to use a risk-based, top-down approach to identify the key controls. 10-4 LO# 1 Corporate Governance A set of processes and policies in managing an organization with sound ethics to safeguard the interests of its stakeholders. Promotes accountability, fairness, and transparency in the organization’s relationship with its stakeholders. 10-5 LO# 1 Overview of Control Concepts Three main functions of internal control: Preventive controls deter problems before they arise. (Authorization) Detective controls find problems when . | Chapter 10 Accounting Information Systems and Internal Controls Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Learning Objectives LO#1 Explain essential control concepts and why a code of ethics and internal controls are important. LO#2 Explain the objectives and components of the COSO internal control framework and the COSO enterprise risk management framework. LO#3 Describe the overall COBIT framework and its implications for IT governance. LO#4 Describe other governance frameworks related to information systems management and security. 10-2 Ethics, Sarbanes Oxley Act 2002 and Corporate Governance The Need for a Code of Ethics Ethical behavior prompted by a code of ethics can be considered a form of internal control. Employees with different culture backgrounds are likely to have different values Many professional associations have developed codes of ethics to assist .