Big4Guy
Big4GuyWelcome to Big4Guy.com. Big4Guy is an online resource where I will share with you the latest news, insights, knowledge and some experiences as a Big 4 consultant. We will discuss some of the important issues which organisations are facing today in the areas of information security, security and controls in SAP R/3, Oracle Applications, J.D.Edwards, Peoplesoft and various other ERP's. You will also find information on latest complaince regulations like Sarbanes Oxley, Basel II and so on. Big4guy will also attempt to provide valuable resources for individuals interested in examinations the CISA, CISM, CISSP, PMP and various other security certifications considered essential for entry in any Big 4 accounting, auditing and consulting firms. You are invited to post your comments and viewpoints to posts here. I sincerely hope this online journal will be useful to everyone from a budding student to a professional in the accounting, auditing, management and consultancy professions.
|
Post details: Internal Control Classification - Preventive Vs. Detective Controls
12/30/05
Internal Control Classification - Preventive Vs. Detective Controls
Let's today go to the basics of Internal Control classification. Controls are basically classified as Preventive and Detective. I am discussing both the types of controls alongwith some examples.
Preventive Controls - Preventive Controls focus on preventing errors or exceptions. Here are a few examples of preventive controls:
1. Standards, policies and procedures are the most basic type of preventive control.
2. Segregation of duties also acts as a preventive control agtainst fraud.
3. Authorization / Approval levels also prevent the risk of an illegal act and are thus preventive in nature.
Detective Controls - Detective controls are designed to identify an error or exception after it has occured. A few examples are:
1. Exception reports. Review of various exception reports helps in detecting errors.
2. Reconcliations. After the fact reconcliations act as a double check against errors and exceptions.
3. Periodic Audits also act as a very good detective control.
More on Internal Controls..>>
Designing Internal Controls
Internal Control Deficiency
Company Level Vs. Company Wide Controls
Comments:
No Comments for this post yet...
Categories
Archives
Search
| Mon | Tue | Wed | Thu | Fri | Sat | Sun |
|---|---|---|---|---|---|---|
| << < | > >> | |||||
| 1 | 2 | 3 | 4 | |||
| 5 | 6 | 7 | 8 | 9 | 10 | 11 |
| 12 | 13 | 14 | 15 | 16 | 17 | 18 |
| 19 | 20 | 21 | 22 | 23 | 24 | 25 |
| 26 | 27 | 28 | 29 | 30 | 31 | |
Misc
All content copyright © 2005-2008
Big4Guy.com
Do not reproduce either in part or full without the express permission of the
Webmaster
