CHAPTER 2
THEORETICAL FOUNDATION
DThe
information system,
including the
related
business processes,
relevant to
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financial reporting, and communication.
DControl activities.
DMonitoring of controls.
2.4.2.Objectives of IC
The IC is implemented by the board of directors, management, and other
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personnel
in
order
to
provide
reasonable
assurance
that
the
following
control
objectives (Gay & Simnett 2005, p. 339) are achieved:
DRisks are identified and minimized.
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DManagement decision-making is effective and business processes are efficient.
DTransactions are carried out in accordance with management’s general or
specific authorization.
DLaws, rules and regulations are complied with.
DTransactions
are promptly
recorded
in the
correct
amount,
in the
appropriate
accounts and in the
correct accounting period so as to allow the preparation of
the
financial report
within
framework
of
recognized
accounting policies
and
to
maintain accountability for assets.
DAccess to assets
in permitted only in
accordance with management’s
authorization.
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