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ACCA PasscardsPaper P1Governance Risk and Ethics

Passcards for exams up to June 2015

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Professional Paper P1Governance Risk and Ethics

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All rights reserved No part of this publication may bereproduced stored in a retrieval system or transmitted inany form or by any means electronic mechanicalphotocopying recording or otherwise without the priorwritten permission of BPP Learning Media

copyBPP Learning Media Ltd

2014

First edition 2007 Eighth edition June 2014

ISBN 9781 4727 1129 8

e ISBN 9781 4727 1185 4

British Library Cataloguing-in-Publication DataA catalogue record for this book is available from the

British Library

Your learning materials published by BPP LearningMedia Ltd are printed on paper obtained from traceablesustainable sources

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BPP Learning Media LtdBPP House Aldine Place142ndash144 Uxbridge RoadLondon W12 8AA

wwwbppcomlearningmedia

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(000)ACP1PC14_FP(Ho)qxp 5282014 1238 AM Page ii

Page iii

ContentsPreface

Welcome to BPP Learning Mediarsquos ACCA Passcards for Professional Paper P1 Governance Risk and Ethics

They focus on your exam and save you time

They incorporate diagrams to kick start your memory

They follow the overall structure of the BPP Learning Media Study Texts but BPP Learning Mediarsquos ACCAPasscards are not just a condensed book Each card has been separately designed for clear presentationTopics are self contained and can be grasped visually

ACCA Passcards are just the right size for pockets briefcases and bags

Run through the Passcards as often as you can during your final revision period The day before the exam try togo through the Passcards again You will then be well on your way to passing your exams

Good luck

(000)ACP1PC14_FP(Ho)qxp 5282014 1238 AM Page iii

ContentsPreface

Page

1 Scope of corporate governance 1

2 Approaches to corporate governance 11

3 Corporate governance practice and reporting 21

4 Internal control systems 31

5 Risk attitudes and internal environment 39

6 Risks 47

7 Risk assessment and response 53

8 Information communication and monitoring 61

9 Personal ethics 6910 Professional ethics 75

11 Corporate social responsibility 83

(000)ACP1PC14_FP(Ho)qxp 5282014 1238 AM Page iv

1 Scope of corporate governance

Topic List

Definition

Concepts

Agency

Stakeholders

Main issues

This chapter sets out the foundations of good corporategovernance defining what corporate governance is thekey concepts and the stakeholders whom goodcorporate governance servesYou may need to considerthe conflicting interests of stakeholders and howstakeholders can control managersdirectors We alsosummarise major issues in corporate governance

(001)ACP1PC14_CH01qxp 5282014 1239 AM

Definition Main issuesStakeholdersAgencyConcepts

Corporate governance is the system by which organisations are directed and controlled It is a set ofrelationships between directors shareholders and other stakeholders

Risk managementand reduction

Appropriate controlsystems

Framework topursue strategy

Guards againstmisuse of resources

Spirit of codes Accountability tostakeholders

Corporate governance

(001)ACP1PC14_CH01qxp 5282014 1239 AM Page 2


1 Scope of corporate governancePage 3

Fairness Take into account all stakeholders with legitimate interestsTransparency Openness disclosure in financial statements press releases websitesIndependence Being free from constraints or influences that would prevent a correct course of

action being takenInnovation Recognise that the needs of businesses and stakeholders can change over timeScepticism NEDs auditors and audit committees should adopt an air of scepticism and an

enquiring mindProbity Truth-tellingnot misleadingResponsibility Management responsible for organisation means of corrective action and

penalising mismanagementAccountability Directors and companies answerable for consequences of actions to shareholders

professionals to values public sector to stakeholders Reputation Jeopardised by poor risk managementcorporate governance ethical behaviour

may impact commerciallyJudgement Taking decisions that enhance organisationrsquos prosperityIntegrity Straightforward dealing honesty and completeness basis of trust



Agency Agency in corporate governanceAgency is acting on behalf of another (principal) indealing with others

Agency costs are the monies and resourcesexpended by principal in monitoring agent

Accountability Fiduciary duty (trust and care) Personal performance Obedience Skill No conflict of interest Confidentiality Handing over benefits

Agentrsquos responsibilities

Directors (agents) run company on behalf ofshareholders (principals)

Agency problem ndash how to prevent directors excessivelyrewarding themselves underperforming

Main solution is to link reward with companyperformance

Profit related pay Shares Share option plans

Transaction costs theoryCompanies seek to keep business dealings in-housemanagers act opportunistically in their own interests




Stakeholder theoryA broad range of stakeholders have claims on anorganisation StockholderShareholder view thatcompany just responsible to shareholders iswrong as modern corporations are very large andsocialpoliticallegal impact is therefore great

Instrumental view ndash mainly economicresponsibilities with aim of maximising profits

Normative view ndash ethicalphilanthropicresponsibilities as well as economiclegal

StakeholdersStakeholders are groups or individuals whoseinterests can affect or are directly affected by theactivities of a firm or organisation

Stakeholder power mappingLevel of interest

D

Power

Low High

Low

HighC

BA

A minimal effortB keep informed as can influence more powerful stakeholdersC keep satisfiedD strategy must be acceptable

Corporate governance accommodates views Repositioning of stakeholders Identify change blockersfacilitators Assess legitimacyurgency

Results of mapping


StakeholdersDefinition Main issuesAgencyConcepts

Proximity to organisationInternal ndash employeesmanagement

Connected ndash shareholders customers supplierslenders trade unions competitors

External ndash government local government publicpressure groups opinion leaders

Active and passive stakeholdersActive ndash seek to participate in organisationsactivities (managers shareholders regulatorspressure groups)

Passive ndash donrsquot seek to participate in policy-making(shareholders local communities government)

Primary and secondary stakeholders

Narrow and wide stakeholders

Primary ndash need participation to continue as goingconcern (customers suppliers government)

Secondary ndash their ceasing to participate wonrsquot affectcontinued existence (government managers)

Narrow ndash most affected by organisationrsquos strategy(shareholders employees suppliers major customers)

Wide ndash less affected by organisationrsquos strategy(government less significant customers community)



Voluntary and involuntary stakeholdersVoluntary ndash those who of their own choice haveinvolvement with the organisation ndash employeescustomers suppliers shareholders

Involuntary ndash engage with the organisation withoutchoosing to do so ndash neighbours wider public Knowledge of stakeholders

Known ndash Existence known to organisation

Unknown ndash Existence unknown to organisation(wildlife communities affected by suppliers)

Direct ndash stakeholders know effecthow affected by

Indirect ndash unaware of claims or cannot express themdirectly

Legitimacy of stakeholders

Recognition of stakeholders

Legitimate ndash valid claims

Illegitimate ndash invalid claims

Who decides legitimacy Basis

Recognised ndash Managers consider interests and viewswhen deciding strategy

Unrecognised ndash Managers dont consider claims whendeciding strategy



Secretary

Customers

Suppliers

Employees

Executive full-time managers non-executive monitoring

Arranges board meetings plans agenda deals with documents and registers generaladministration reports to chairman

Concerned with impact of board upon position supervise and co-ordinateimplementation of business strategy and risk management provide data for board

Commitment interest in pay and conditions need to implement control systems adoptculture and provide feedback

Pay and working conditions concerned with poor board communication lax risk andcontrol environment can be used to harness employee support

Co-operation needed for just-in-time supply poor payment record leads to creditrestriction and poor service

Increased expectations power to shop elsewhere ability to make views known ethicalrequirements

Directors

Sub-board management

Trade unions



Highlight governance and reporting issues independence required to supplyconfidence in information need for audit committee to reinforce position

Establish rules and standards carry out inspections May be enforcement costs orregulatory capture domination of regulator by regulated

Establish overall climate encourage private shareholdings provide subsidiesnationalise poorly performing industries run public sector organisations

Companies raise money investors transfer shares supply data about companyvalue and provide regulatory framework for governance

Can influence prices avoid speculative shares want short-term profits can influencecompanies through meetings and voting able to take direct action if dissatisfied

Hold small numbers of shares in companies trusts and funds Likely to beundiversified and concerned with information asymmetry

Services from public sector aid from charities

Provide funds to charities want them well-spent

External auditors

Regulators

Government

Stock exchanges

Institutional investors

Small investors

RecipientsDonors



Duties of directorsCorporate governance guidelines reinforce legal andfiduciary duties to act in companyrsquos best interestsuse powers for proper purpose avoid conflicts ofinterest and exercise duty of care

Accounting and auditingGreater transparency and reliability of accountsdecreasing investor risks Tougher auditing standardsand requirements for auditors to avoid conflicts ofinterest

Board supervisionNeed for board to meet regularly to consider effectivelyorganisationrsquos activities risks and control systems

Directors remuneration

Corporate social responsibility

Board compositionNeed to avoid domination by single individualsmallgroup of executive directors

Builds on stakeholders debate what responsibilitiesshould organisation and board fulfil

Directors being paid undeserved and excessiveremuneration and bonuses Allegations that directorshave been rewarded for making losses


2 Approaches to corporate governance

Topic List

Development of guidance

Basis of guidance

Major governance codes

Sarbanes-Oxley


Public sector governance

In this chapter we summarise the factors that haveinfluenced the ways corporate governance hasdeveloped including the important rules v principlesdebateYou may be asked about these in part (a) of aquestion before you consider specific corporategovernance arrangements later in the question We alsogive details of the major worldwide codes particularlythose that have international impact

Corporate social responsibility is a major topic in thisexam and the themes we cover here and in Chapter 11will occur in many questions


Corporate socialresponsibility

Development ofguidance

Public sectorgovernance

Sarbanes-OxleyMajorgovernance codes

Basis ofguidance

Internationalisation

Governance development

Investor treatment Financial reportingweaknesses

Individual countrycharacteristics

Corporate scandals

Openness Integrity Accountability






2 Approaches to corporate governancePage 13

Basis ofguidance

Principles-based approachMost corporate governance codes use a principles-based approach with broad guidelines supplemented bylimited specific requirements Encourage companies tocomply or explain

Rules-based approachRules-based approach focuses on regulations andtargets that must be met without any leeway It should beeasy to ascertain compliance but in practice there maybe questionable situations which are not fully covered bythe rules

Fulfil strategic objectives Reinforce governance regulation Minimise risk Promote ethical behaviour Underpin investor confidence Fulfil stakeholder responsibilities Establish management accountability Maintain NEDauditor independence Provide accurate reporting

Encourage owner involvement

Direct behaviour

Key Principles






Basis ofguidance

Insider systemsMost companies listed on stock exchange are controlledby a few individuals for example family companies

Avoids inflexible rules Less burdensome Allows scope for development Comply or explain Emphasis on investor judgement

Advantages of principles

Outsider systemsShareholdings are widely dispersed managerownerseparation

Strong owner-manager linksLonger-term viewDiscrimination v minorityLack of monitoringgovernance

Robust governance regimeHostile takeover threat constrains managementAgency problemShort-term priorities

AdvantagesDisadvantages

Insider Outsider

Principles too broad Lack of consistency Confusion over what is compulsory Companies treat as non-binding Markets dont understand disclosures

Problems with principles





Sarbanes-OxleyBasis ofguidance


Majorgovernance codes

OECD principles

Shareholderstakeholder rights Equitable treatment of all shareholders Stakeholders rights protected Timelyaccurate disclosure of material matters Board responsible for strategy and monitoring

PrinciplesICGN reportInternational Corporate Governance Network hasprovided practical guidance for boards to operateefficiently and compete for scarce capital

Organisation for Economic Co-operation andDevelopment produced non-binding principles toaddress the interests of global investors Companiesshould work towards achieving principles andprinciples are guidelines for individual countries todevelop own codes

UK Corporate Governance CodeCode derived originally from Cadbury Greenbury andHampel reports supplemented by

Turnbull report ndash risk and internal control Smith report ndash audit committees Higgs report ndash non-executive directors






Basis ofguidance

The non-audit services auditors can provide aresignificantly restricted and auditors are subject tovarious other rules

Compulsory partner rotation

Retention of audit papers

Quality control standards

Review internal control systems

Sarbanes-OxleyThe Sarbanes-Oxley Act was a response to thecollapse of Enron one of Americas biggest companiesThe Act is more prescriptive than codes in otherjurisdictions impacting on review of controlsdisclosures audits ethics and directorsrsquo share trading

Lack of transparency in accounts Non-executive directors weak Lack of external audit scrutiny Directorsrsquo use of inside information Dishonesty and law-breaking

Weaknesses at Enron

Corporate responsibilityChief executivechief finance officer certify

Appropriateness of accounts

Accounts fairly reflect operations and financialcondition

If accounts have to be restated they forfeit theirbonuses

Auditing requirements



Audit committeesEvery listed company should have an auditcommittee consisting of independent directors withmember(s) with financial expertise Audit committeeshould be responsible for

Appointment compensation and oversight ofauditors

Discussing key accounting policies with auditors Setting up complaints mechanisms

Internal control reports (s404)Annual accounts must contain internal control reportsthat

State management responsibility for controlstructurefinancial reporting procedures

Assess effectiveness of control structurefinancialreporting procedures (with audit report)

State whether code of conduct for senior financialofficers has been adopted

Whistleblowing Off-balance sheet transactionsEmployeesauditors will be granted whistleblowingprotection if they disclose private employerinformation to parties involved in a fraud claim

There should be appropriate disclosure of material off-balance sheet transactions






Basis ofguidance

Carrolls modelFour levels of responsibilities

Economic ndash shareholdersemployeescustomers Legal ndash comply with laws Ethical ndash act in fair and just way Philanthropic ndash generosity to employees

community

Collaboration time-consuming and expensive Culture clashes with certain stakeholders Collaboration on some issues conflict on

others Lack of consensus between different

stakeholders

Problems with stakeholder view

CSR and stakeholdersBusinesses benefit from goodwill and other aspectsof society and therefore owe those particularlyaffected by their activities certain duties in return

Significance of responsibilityLarge businesses in particular face expectations thatthey will act in a socially responsible fashion



Ownership responsibilitiesBy buying shares shareholders buy a responsibility toensure that company is managed efficiently and in waysconsistent with public welfare Responsibilities of institu-tional shareholders have been stressed institutionalshareholders large shareholdings meaning theyshould be actively involved and pressure managers

Shareholders with small holdings arenrsquotinfluential

Shareholders can easily dispose of shares andthis loosens feelings of obligation

Ownership view problems

Objectives

Mission statements

Ethical codes

Governance codes

Stakeholder board representation

Corporate social reporting

Impact of CSR






Basis ofguidance

Public sector Private sector Charitable status NGOsquasi NGOs

Purposes and objectives Public service Profit Relief of povertyresearch etc

As defined by owners

Performance Central regulation Financial reportingstandards

SORP Set outcomes

Ownership Government Partnersshareholders

Donors Government

Stakeholders (including lobby groups)

The public centralgovernmentservice users

Shareholdersregulators taxationauthorities

Service users Governmentlobbying groups


3 Corporate governance practiceand reporting

Topic List

Role of board

Board membership

Non-executive directors


Stakeholder relationships

Reporting

Corporate governance practice is a key area in thissyllabus and you can expect to be asked whether anorganisation is following good practice The role andactivities of the board will be significant elements inmany questions How corporate governance practiceserves the interests of stakeholders will also beimportant


ReportingRole of board Stakeholderrelationships

Directorsremuneration

Non-executivedirectors

Boardmembership

Scope of boards roleThe board should have a formal schedule of mattersreserved to it for decisions Board is also responsiblefor overseeing strategy monitoring risk controlsystems and management and ensuring effectivecommunication

Maximise talent pool Broader range of knowledge Access stakeholder constituencies Greater independence Corporate citizen

Advantages of diversity

Legal responsibilities Avoidance of conflict of interest Time limits on appointments Limits on service contracts Retirement by rotation Insider dealing

Legal and regulatory frameworks

Nomination of directorsNomination committee should oversee appointmentsand make recommendations to the board Needs toconsider

Executivesnon-executives Gaps in current boards skills Expanding board diversity (age gender race

ethnicity education background) Continuity and succession planning


3 Corporate governance practice and reportingPage 23

CPD and appraisalsAll board members should have training coveringstrategy management legal responsibilities andcompany related issues

There should be annual appraisals of the performanceof the whole board and of individual directors

Performance against objectives Contribution to strategyenvironment Response to problems Considering right matters Communication Effectiveness of board committees Quality of feedback Adequacy of decision-making

Board appraisal

Advantages of multi-tier boards

Supervisorssupervised separationDeters management fraudBetter links with stakeholdersBetter use of non-executive time

Disadvantages of multi-tier boards

Lack of accountabilityDont receive information from managersSupervisory board decision-making restrictedLess effective at questioning managers

Companies in some countries are run by two or moreboards often with supervisorymanagement role split

Multi-tier boards





Boardmembership

Board membershipCompanies need to consider optimumsize balance of executive and non-executive directors and diversity ofmembership

Division of responsibilitiesNo one individual should have unfettered control Ideally chairman andchief executive should be different people if not there should be a strongindependent element on the board with a recognised senior member

Board committeesBoard committees supervise specificareas doesnt absolve main boardfrom overall responsibilities Keycommittees

Nomination (this chapter)

Audit (Chapter 8)

Remuneration (this chapter)

Risk management (Chapter 5)

Strategic development

Investment analysis

Risk management

Recommendations toboard committees

Control systemsenforcement

Responsibilities of CEO

Running board

Accurate board information

Shareholder communication(Chairmans Statement)

New director induction

Board appraisal

Board development

Signing off accounts

Responsibilities of chairman






Boardmembership

Number of NEDsUSAUK ndash Independent NEDs at least half of boardothers ndash sufficient for views to carry weight

Independence of NEDs No businessfinancialother connection No share optionspensions Appointment for specified term Ability to take independent advice

Advantages of NEDs

External experience and knowledgeWider perspectiveComfort for investorsConfidantenablerBoard members but objective

Disadvantages of NEDs

IndependenceRestricted recruitmentDifficult to impose viewsCanrsquot prevent problemsLimited time

Non-executive directors (NEDs)NEDs have no executive (managerial) responsibilitiesThey should provide balance and help to reduceconflict between executive directors and shareholdersMajority of NEDs should be independent

Role Strategy Scrutiny

Risk management Board personnel





Boardmembership

Service contractsIf service contracts are too long premature terminationmay mean significant payments Service contractsshouldnt be gt12 months normally

Remuneration committeeCommittee of independent NEDs determining

Remuneration policy Specific remuneration packages

PrinciplesUKs Greenbury committee suggests

Directors remuneration set by independent boardmembers

Bonuses related to measurable performanceenhancedlong-term shareholder value

Full transparency in annual accounts

Remuneration statementConsider and disclose

Remuneration policy Arrangements for individual directorsConsider allowing members to vote onremuneration statement in accounts



Elements of remuneration packageBasic salary ndash in contract of employment

Performance-related bonuses ndash limited possiblyto maximum of pay shouldnt be given fortransactions or if excessive risks taken

Shares ndash granted on condition cant be sold

Share options ndash purchased at specified exerciseprice encouragement to improve companysperformance and hence share prices options(and shares) to be held for certain length of time

Benefits-in-kind ndash is cost excessive and howcomparable are they with what employees aregiven

Pensions ndash best practice to make only basicsalary pensionable

Need to attract and retain directors Interests of stakeholders Weighting and phasing of different parts of package Directormanager differentials Impact of directormanager resigning Performance measures

Factors affecting remuneration levels

Variety of financialnon-financial measures Focus on current not historic performance Avoid short-termism Reward individual effort

Performance measures





Boardmembership

Relationships with stakeholdersOECD stresses role of

Employees Creditors Suppliers Investors Government

Position of stakeholders should be

Protected by law Enhanced by participation (eg employees share

ownership profit-sharing arrangements seat onboard)

Relationships with shareholdersDirectors should be required to submit to regular re-election (every yearevery three years) Boards shouldconsider relationships with all shareholders particularlyinstitutional shareholders Annual general meetings nor-mal part of calendar other general meetings discussissues of immediateserious concern

Proxy votingMyners report recommends

Clear agreements between beneficial ownersand investment managers

Stock lending shouldnt happen Electronic voting Poll (including proxies) for all resolutions



Annual general meetings

Notice gt 20 daysbefore

Businesspresentation

Question andanswer sessions

Shareholders vote onsubstantiallyseparate issues

Shareholders vote onreport and accounts





Boardmembership

Board composition directors NEDs evaluationof board performance

Committee reports Relations with auditors and shareholders Review of internal controls Going concern Sustainability reporting Business review

Major disclosuresReportingLondon Stock Exchange requires

Narrative statement of how principles in UKCorporate Governance Code have been applied

Statement of compliancedetails of reasons fornon-compliance

Voluntary disclosuresDisclosures above statutorybest practice minimumDisclosures should follow certain principles

Planned process Transparency in disclosures made Consultation with users All relevant information considered Disclosures subject to review

Wider information provision Different forms of information Greater assurance about management Reflect investor interests

Benefits


4 Internal control systems

Topic List

Control systems

Nature of risks

Control framework

Control limitations

Enterprise risk management

Assessment of systems

In this chapter we look at the key elements of soundcontrol systems The overall environment and ethos oforganisation is as important as the specific proceduresThe risks organisations face should have a significantimpact upon the control frameworks they adoptYou mayneed to assess the effectiveness of control systems andthe difficulties of implementing sound systems


Controlsystems

Enterprise riskmanagement

Assessment ofsystems

Control limitations

Controlframework

Nature ofrisks

Internal management control

Cybernetic control system

Management planning organising and directing sothat organisational objectives are achievedTurnbull report listed key aims Facilitate effective and efficient operation Ensure quality of reporting Ensure compliance with laws and regulations

Process of control within system

Identification of system objectives Setting targets for system objectives Measuring system achievementsoutputs Comparing achievements with targets Identifying corrective action Implementing corrective action

Embedded in operations Form part of culture Capable of quick response

Characteristics of control systems

Ease of targetachievement

Qualitativequantitativemeasures

Shortlong-termmeasures

Consistency ofmeasures

Managementintervention

Automatic controlmechanisms

Reliance on socialrelationships

Features of control systems


Controlsystems



Control limitations

Controlframework

Nature ofrisks

4 Internal control systemsPage 33

Risk classificationRisks can be classified in various waysFundamental ndash affects society in generalParticular ndash individual in controlSpeculative ndash good or bad consequencesPure ndash only outcomes harmful

Risk and uncertaintyUncertainty means possible outcomes andor chancesof each occurring are unknown

Risk and corporate governanceCorporate governance reports aim to addressshareholder concerns that directors are notachieving adequate returns for risks incurred andprovide mechanisms for controlling directors whoare taking excessive risks Directors responsibilityfor monitoring and disclosing risk management isstressed

Predictability of cash flows Limitation of effects of bad events Increased shareholder confidence Weigh costs

Benefits of risk management

Risk and returnBusinesses have to take some risks to trade(entrepreneurship) Businesses may tolerate higherrisk levels provided they receive higher returns


Controlsystems



Control limitations

Controlframework

Nature ofrisks

CONTROL FRAMEWORK

Control activitiesControl environment

Orderly conduct of business Adherence to internal policies and laws Safeguarding assets Preventiondetection of fraud Accuracycompleteness of accounting records Quality of information and reporting

Purposes

Objectives

Natureextent ofrisks

Acceptable risks

Likelihood risksmaterialise

Ability to reducerisks

Costsbenefits ofcontrols

Changes in riskconditions

Control systems and risks


Controlsystems



Control limitations

Controlframework

Nature ofrisks


Costs gt benefits Human errorFraud Employee collusion

Managementbypass

Designed for routinetransactions

Depend on methodof data processing

LIMITATIONS OF CONTROLS


Controlsystems



Control limitations

Controlframework

Nature ofrisks

Enterprise risk management (ERM)ERM is framework suggested by COSO for dealingwith risk It is a fundamental process operated atorganisation level that helps staff understand risksresponsibilities and authority levels ERM should

Apply in strategy setting Apply in all areas and over whole organisation Identify events affecting entity Manage risk according to risk appetite Provide reasonable assurance Support organisational objectives

Align risk appetite and strategy Link growth risk and return Choose best risk response Minimise surprises and losses Manage risks over whole organisation Allows organisation to seize opportunities

ERM benefits



Internal EnvironmentObjective Setting

Event IdentificationRisk AssessmentRisk Response

Control ActivitiesInformation amp Communication

Monitoring

STRATEGIC

OPERATIONS

REPORTING

COMPLIANCE

ENTITY LEVELDIVISION

BUSINESS UNITSUBSIDIARY

COSOs Enterprise Risk Management framework


Controlsystems



Control limitations

Controlframework

Nature ofrisks

Objectives Risk links Compatibility Control mixHuman

resources

Framework Review Information

ASSESSMENT

Feedback Costsbenefits


5 Risk attitudes and internal environment

Topic List

Risk attributes

Stakeholders and risk

Internal environment

Risk management responsibilities

Objective setting

This chapter covers the underlying factors that helpdetermine how organisations respond to the risks theyface These factors include attitudes to risk theenvironment and culture and the organisational structureincluding responsibilities for dealing with risks


Objectivesetting

Risk managementresponsibilities

Internalenvironment

Stakeholdersand risk

Risk attributes

Emotional satisfaction

Risk-averse or risk-seeking

Riskreturn

Size Structure Development Past experience Focus on avoiding

risk

Organisational influences

Shareholder requirements

Personal views

Risk attributes

National influences Government protection


Objectivesetting


Internalenvironment


Risk attributes

5 Risk attitudes and internal environment Page 41

RISK

CONCERNS

Dividend impact Capital gain impact Dependent on their risk appetitediversification Threat to repayment Security imposed Threat of other debts Job threats Health and safety worries Ability to take action Losses on sales Unwilling credit suppliers Disruption of relationships Delivery failures Lack of value Poor quality Poor employment policies Adverse impact on the environment

Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes

Internalcontrol environmentThe control environment is the attitude awareness andactions of management in relation to internal controls providing the background for the operation of other controls

Risk management philosophy Risk appetite Integrity Ethics Organisational environment

Risk environment

Managements philosophy and operating style Control culture Organisational structure Methods of imposing control Integrity ethical values and competence

Elements of internal environment

Clear risk management strategies Culturecode of conductHRMreward systems support

objectives and risk limitation Senior management commitment to competence

integrity and trust Clear authority and responsibility Communication procedures Staff have knowledge skills and tools

Strong internal environment



Embedding risk awarenessRisk assessment should evolve into a consistent activityembedded across all processes focus on

Threats to shareholdersstakeholders (future growthopportunitiescore business)

Consistent action-orientated risk assessment

Internal communications programme Training Involvement in risk identification Incentives Key personnel persuasion Infrastructure support

Changing risk culture Definitions and objectives Regulatory requirements Links to strategic decision-making Key areas Risk classification Risk responsibilities Important controls Assurance reporting Training

Risk policy statement

Risk registerFormal collection of risk and response informationRegister lists and prioritises risks and specifiesresponsible individuals and action taken


Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff

Determines risk management strategy and monitors overall risks setsand reviews internal control

Build on overall framework specifying risk management methods andco-ordinate responses may staff risk management group

Audit risk management processkey risk area controls

Audit risk areas that impact materially on financial statements

Identify and evaluate risks in their areas use performanceindicators for monitoring implement responses

Follow risk management procedures have good understandingreport dangers



Risk committeeCommittee of directors separate from auditcommittee responsible for monitoring andsupervising risk identification and management

Can be staffed by executive directors Allows audit committee to concentrate on

financial risks

Risk management personnelRisk specialist ndash consultant called in to advise on particularaspects of risk management

Risk manager ndash employee with specific responsibility fordealing appropriately with risks

Risk management function ndash employees in largerorganisations

Determine risk managementstrategypolicy

Review reports on risk Monitor overall exposure Monitor changes in circumstances Assess effectiveness of RM systems Review statement on internal control

Role of RM committee

Helping determine risk management strategies Champions of risk management Building risk awareness culture Establishing risk policy and structures Developing and reviewing risk management processes Co-ordinating functional responses Preparing report for boardshareholders

Role of RM function


Objectivesetting


Internalenvironment


Risk attributes

MissionA general objective visionary often unwritten andvery open-ended without any time limit for achievement

Strategic ndash high level goals support mission Operational ndash effectiveness and efficiency Reporting ndash reliability Compliance ndash with applicable laws

COSO model

Profitability Market share Growth Cash flow Customer satisfaction Quality Added value

Corporate objectives

Objective setting and riskStrategic objectives and mission will influence riskmanagement

However businesses should also determine riskappetite (willingness to take risks) and riskstrategy

These in turn should influence business objectivesBusinesses should take a portfolio view of riskslooking at relevant risks over the whole organisation


6 Risks

Topic List

Strategic and operational risks

Types of risks

Risk identification

In this chapter we look at the risks that organisationsface We draw various important distinctions betweendifferent kinds of risk and emphasise the link betweenrisk and return We also look at examples of the key risksthat organisations have to counter


Types of risksStrategic andoperational risks

Risk identification

Strategic risksFundamental risks to organisations profitsexistencearising from the sector itrsquos in and the nature of what itdoes Strategic risks arise out of decisions aboutresources products acquisitions and investments

Operational risksRisks of loss from failures in internal business andcontrol processes

Stakeholders State of economy Nature of industriesmarkets Level of competition Availabilityprice of resources Flexibility of production Ability to innovateRampD Stage of product life cycle

Factors affecting strategic risks IT failures Human error Loss of key staff Fraud Business interruptions Internal audit weaknesses

Examples


Entrepreneurial risksRisks from carrying out business activitiesEntrepreneurial risks must be taken if business is tomake profits

Financial risksThreats to organisationrsquos continued existencethrough lack of available funds or taking onexcessive or unsuitable commitments Risks alsoinclude credit risk from non-paying debtors andcurrencyinterest rate risks

Market risksRisks arising from markets within which a companyoperates risks arising from movements in marketvalue of asset

6 RisksPage 49


Risk identification

Product risksRisks of financial loss due to producing a poorquality product They include need to compensatedissatisfied customers possible loss of sales andneed for expenditure on quality control procedures

Legal risksRisks of fines or threats of closedown or incurringcosts to fight legal actions

Political risksPolitical risk is the risk that political action will affectorganisation Examples include quotas tariffsexchange controls and nationalisation



Risk identification

Fraud risksRisks of loss through fraudulent activities of employeesor managers Fraud risks are often increased by poorcorporate governance procedures allowing senior staffto commit fraud because mechanisms to challengetheir behaviour are ineffective

Knowledge management risksRisks of losses due to failure to secure knowledgeresources adequately Risks include abuse ofintellectual property power failures leading to loss ofinformation loss of key staff

Property risksRisks from damage destruction or theft of propertyDangers include fire wind water leakage andvandalism

Technological risksRisks of loss through the inadequaciesdisruption ofIT systems and resources risks arising frominformation strategy pursued

Health and safety risksRisks include loss of employees time and having topay compensation or legal costs Risks arisebecause of lack of policy poor culture lack ofemergency procedures

Environmental risksRisk arising out of environmental effects ofoperations Organisations can suffer fines badpublicity non-co-operation


6 RisksPage 51

Trading risksRisks of disruption in the course of trade

Physical ndash goodsdocumentation loststolen Trade ndash customer refuses goodscancels order Liquidity ndash inability to finance activities

Disruption risksRisk of disruption to operations caused by ITfailures employee problems supplier loss legalaction

Resource wastage risksRisks include incurring excessive costs or waste ofemployees time and resources

Crystallisation of risks Poor customer service Failure to innovate Poor ethics

Poor reputation

Organisational risksRisks that membersemployees of an organisationwill behave in ways detrimental to the organisationeg failure to adapt to change

Reputation risksRisk of loss of reputation arising from adverseconsequences of another risk


Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking

Risk condition identification

Risk identificationNeed to know whether likely perils are present and be aware of possibility of unlikely risks Identification canfocus on targeting unacceptable risks or risk levels

External events eg economic conditions

Internal events eg human errors

Conditions resulting in risks

Trends and root causes

Event interdependencies

Event identification


7 Risk assessment and response

Topic List

Risk assessment

Risk responses

Control activities

In this very important chapter we deal with how risks aremanaged in particular how risks are reduced by controlactivities


Riskassessment

Riskresponses

Controlactivities

Risk managementeffectiveness

Risk managementcosts

Stakeholderpressures

Comprehensivecoverage

Risk assessment

Accurate analysis Responsive tochanging risks


7 Risk assessment and responsePage 55

LikelihoodConsequences matrix Risk quantificationUse LikelihoodConsequences matrix as basis forsetting priorities for risk management

Need an idea of possible results or losses togetherwith distributions and confidence limits

Average or expected result or loss Frequency of losses Chances of losses Largest predictable loss

Key calculationsConsequences

HighLow

Low

Loss of suppliers

Loss of lower-levelstaff

High

Likelihood

Loss of key customersFailure of computer systems

Loss of senior or specialiststaffLoss of sales to competitorLoss of sales due tomacroeconomic factors

Sensitivity analysisExamine impact of key variable changes such assales price + volume initial + operating costs cost ofcapital


Riskassessment

Riskresponses

Controlactivities

Accounting ratiosObjectivesubjective risks

Consolidation of risk

Debt ratio Gearing Interest cover Cash flow ratio Current ratio Quick ratio

Key ratios

Ratios can demonstrate risks to companies andshareholders particularly liquidity or solvency risks

Objective risks can be assessed with high accuracy

Subjective risks cannot be quantified easilyassessment depends on knowledge and skills ofassessor

Related risksRisks may be relatedcorrelated because theircauses are the same or one risk links to another

Need to aggregate at organisation levels risksidentified and quantified at operational level

Need also to consider impact of correlated riskswhere two or more different risks vary together


Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept

Cost of actionbenefits

Transfer

Insurancecontingency planning

High Reduce

Controls to limit riskoccurrenceimpact

Avoid

Immediate action requiredpossible abandonment of activities

LikelihoodConsequences matrix

Likelihood StopDrop ndash Not taking profitable opportunity on grounds of excessive risk

Go ndash Going ahead with activity and incurring losses

ALARPndash Reducing risks to as low as reasonably practicable levels


Riskassessment

Riskresponses

Controlactivities

Risk sharing Forwards Joint ventures

Futures Swaps

Risk transfer Options Securitisation

Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting

Working capital management

Internal strategies

Financial risk management


Riskresponses


Controlactivities

Riskassessment

Classification of controlsCorporate are general policy culture values overallmonitoringManagement include planning performance monitoringrisk evaluationAdministrative include organisation structure authorityand reporting lines communication channelsAccounting are recording of transactions andsafeguarding records transactions and assetsPrevent stop errors happening including checks ofdocumentation before paymentdeliveries madeDetect pick up errorsCorrect minimise or negate errors eg back-upNon-discretionary cant be bypassedGeneral relate to environment

Approval and control of documents

Controls over computerised applications and ITenvironment

Checking arithmetical accuracy

Control accounts

Trial balances

Reconciliations

Physical counts

Comparing internal and external data

Limiting direct physical access

Types of control procedure


Riskassessment

Riskresponses

Controlactivities

Assurance from internal controlsInternal controls can only provide reasonable assurance that managementobjectives will be achieved because of theirlimitations

Benefits of controlsBenefits may be financial(less costs)

Benefits may be non-financial(efficiency and effectiveness improvements less internalaudit resource required)

Costs of controlsCosts include direct costs (salary) opportunitycosts (time) and perhaps reduced flexibilityresponsiveness and creativity

Difficult to estimate risk exposure

Difficult to estimate impact of controls

Comparison of financial costs v non-financial benefits

Benefits v costs


8 Information communication and monitoring

Topic List

Internal communication

Monitoring

Internal audit

Audit committee

Board review and reporting

This chapter emphasises the importance of informationflows and communication between managers and staffThe principles of good communication also apply toformal reports in the accounts on risk and internalcontrol We also cover the monitoring activities requiredto ensure control systems remain effective


Internalcommunication

Monitoring Board review and reporting

Audit committeeInternal audit

Directors information requirementsDirectors need information about risks linked toachievement of organisations objectives andcontrol mechanisms that should respond tochanges in business environment

Directors should

Compare different sources of data Consider adequacy of communication

channels Provide feedback Review managementinformation systems

Guidance from chief executive Circulation of risk policies Staff involvement in policy development Workshops and training Whistleblowing procedures

Communication methods

Communication of policiesTurnbull report recommends policies are communicated infollowing areas Customer relations Service levels Health safety and environment Asset security and business continuity Expenditure Accounting financial and other reporting



Monitoring

8 Information communication and monitoringPage 63



Strong control environment Prioritisation Communication structurereporting

Effectiveefficient monitoring

Elements of monitoringOngoing monitoring includes routine day-to-dayreviews

Separate evaluation includes annual review ofcontrols plus internal audit evaluations

Monitoring ensures that internal controls continue to operate effectivelyThis process involves assessment by appropriate personnel of the design and operation of controls on a timely basis and taking necessary actions

Audit committee liaison with auditors Internal audit work on control Monitoring programs in information systems Reports of potential failures Supervisory controls Management self-assessment Quality control on internal audit

Monitoring procedures





Internal auditInternal audit is an independent appraisal activity established within an organisation which examines andevaluates the adequacy and effectiveness of other controls

Need for internal auditNeed depends on complexity of activities employeenumbers cost-benefit considerations Necessary when

Changes in organisational structure Changes in key risks Problems with internal control systems Increased number of unexplained or unacceptable

eventsObjectives depend on information and recommendationsrequired by organisation also state of organisations riskmanagement

Accounting and internal control systems Financial and operating information Economy efficiency and effectiveness Compliance with laws and regulations Safeguarding of assets Implementation of organisations objectives Risk auditing Special investigations

Internal audit areas



IndependenceIA should be independent of activities andmanagement being audited

Threats to independenceThreats include involvement in systems design andconsultancy familiarity with other staff and reportingto finance director whose activities are being audited

IA staff dont audit their previous departments IA staff dont audit systems they designed Unrestricted access to records staff personnel Report to audit committee Rotation of IA staff

Dealing with threats

Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd

Access to all areas en

Relevant skills ce

Audit senior managers





Role of audit committeeThe audit committees work should improve publicconfidence in corporate governance by helping tocreate a climate of control and improving the quality offinancial reporting The committee should also

Enable NEDs to play positive role Help finance director Strengthen position and independence of external

auditors

Audit committee membershipAudit committee should consist of independent non-executive directors and should include member(s)with significant and recent financial experience

Duties of audit committeeReview of financial statements including changesin policies judgemental areas compliance

Relationship with external auditors includingappointmentremoval independence scope liaison

Review of internal audit including standardsindependence scope resources reporting workplans liaison with external auditors results

Review of internal control including systemsadequacy legal compliance fraud risk auditorsreports disclosures

Review of risk management

Investigations



Monitoring




Strategic ConsequenceslikelihoodsRisks

Identifyingevaluating andmanaging risks

Control systemeffectiveness

Actions toreduce risk

Need for moremonitoring

Risk assessment Clear objectives Assessment of significant

risks Acceptable risks

understood

Controlenvironmentactivities Risk management policy Effective culture Senior management

commitment Clear authority lines Communication

Information andcommunication Quality of reports Changing information needs Balanced reporting Whistleblowing channels

Monitoring Effective processes Flexibility Follow-up Significant event

reporting

Regular review





Annual review of controlsReview should be wider-ranging than normal review Changes in risks faced Changes in organisations ability to respond to risks Scope and quality of managementrsquos monitoring Work ofneed for internal audit Extent and frequency of reports to board Significant controls failings and weaknesses

External reporting on risk managementBoard should disclose existence of process formanaging risks how the board reviewed the effectiveness of the process and whether theprocess accords with the Turnbull guidance

Responsibility for internal control Responsibility for review of effectiveness System manages not eliminates risk System provides reasonable assurance v

loss Summary of review Process for dealing with problems Weaknesses resulting in material losses

Contents of report

Internal risk reportingNeeds to be comprehensive and carried out systematicallyand regularly Most serious risks may need to be reporteddaily Reports should show Risk levels before controls implemented Actual risks vs predicted risks Feedback on action taken Level of residual risks


9 Personal ethics

Topic List

Ethical theories

Individual influences

Situational influences

Approaching ethical problems

Donrsquot think of this chapter as too theoreticalYou may seequestions where you have to determine what wouldinfluence an individuals ethical decision-making or useTucker or the AAA model to assist the decision-makingprocess


Ethical theories Approachingethical problems

Situationalinfluences

Individualinfluences

Lack of objective standardsNon-cognitivism ndash no possibility of acquiring objectiveknowledge of moral principles

Moral relativism ndash right and wrong are culturallydetermined

Objective standardsCognitivism ndash objective universal principles exist andcan be known ethics can be regarded as absolute

PluralismDifferent views may exist but it should be possible toreach a consensus morality is a social phenomenon

EgoismAct is ethically justified if decision-makers pursueshort-term desires or long-term interests (justificationfor free market)

Teleological Consequentalist ethics

Deontological ethics

Moral judgements based on outcomes orconsequences Utilitarianism means acting for thegreatest good to the greatest number

Kant stated that acts can be judged in advance bymoral criteria

Do what others should be doing Treat people as autonomous beings and not as

means to an end Act as if acting in accordance with universal laws


9 Personal ethics Page 71




National and cultural beliefsDifferences lie in four main areas Role of individual v collective good Acceptance of power distribution Desire to avoid uncertainty Masculinity v femininity (moneypossessions v

peoplerelationships)

MoralityActions are influenced not only by peoples ownintegrity but also how much awareness they have oftheir actions moral consequences

Psychological factorsFocus is on how people think and how they decidewhat is morally right and wrong

Moral developmentKohlbergs three levels ndash ethics determined by

Rewardspunishments (Pre-conventional)

Others expectationslaw (Conventional)

1

2

3 Individuals own decisions (Post-conventional)

Locus of control

Education and employmentPeoples educationwork background seems to be moresignificant with globalisation

Influence individuals believe they have over their ownlives Internal ndash individuals have significant influence External ndash lives shaped by luckcircumstances





Moral intensityCan be used to decide how ethically significant anissue is

Moral framingHow issues are perceived in organisations Use oflanguage can be important (fairnesshonesty) but alsosignificant is the degree to which managers are willingto frame issues in moral terms

Organisational cultureBasic assumptions that define organisations view ofitself and its environment

Values Beliefs Behaviours Taken for granted assumptions

Components of organisational culture

Magnitude of consequences Societys view of problem Probability of effect Speed consequences will occur Nearness of those affected Level of suffering of those affected

Criteria

Nationalcultural contextEthical decision may be shaped by nation in which ithappens



Systems of rewardEthical positions can be affected for better or worse byremuneration Basis of reward may encourage undesirable practices Failing to rewardpunishing ethical behaviour may

deter it

BureaucracyA system including detailed rules and proceduresthat underpins reward and authority systems

Rules override individual beliefs Morality in terms of following procedures Distancing individuals from consequences Denial of individualsrsquo moral status

Bureaucracy characteristics

Work rolesThe work role individuals have will determine what theybelieve to be ethical

Organisational fieldOrganisations share a common businessenvironment and hence common norms andvalues

AuthorityManagers can encourage good or bad behaviour by theexample they set whether they set targets that encouragepoor behaviour or fail to stop unethical behaviour





How to gain marksMarks will be awarded for

Analysis of the situation

Recognition of ethical issues

Explanations of relevant ethical guidance

Making clear logical and appropriaterecommendations

Justifying recommendations in practical businessand ethical terms

Profitable Legal Fair

Right Sustainable

Tuckers model of decision-making

Facts Ethical issues Normsprinciples

values Alternative courses

of action

Best course ofaction

Consequences Decision

American Accounting Association


10 Professional ethics

Topic List

Company codes

Professional codes

Ethical threats and safeguards

Accountants in business

Public interest

In this chapter we focus on professional and businessethics Knowledge of the ethical threats is as importantas it was in earlier auditing papers and you need toadopt a logical approach to solving ethical dilemmasHowever in this paper itrsquos also important to understandwhy codes take the form they do and how much impactthey have Independence will be a key issue in manyquestions


Company codes Public interestAccountantsin business

Ethical threats andsafeguards

Professionalcodes

Code of conductCode seeks to establish organisations values promotebusiness objectives emphasise responsibilities tostakeholders control individuals behaviourHowever issuing a code isnt enough a code needs tobe backed by Commitment of senior management Staff understanding of importance of ethics Staff commitment to ethics

Detailed guidance RecruitmentSelectionInduction Training Reward schemes Whistle-blowing procedures Ethical departmentsaudits

Other measures

Ethical principles Commitment required from employees Compliance with law Treatment of customers Treatment of suppliers Commitment to fair competition Commitment to environment Commitment to community Corporate citizenship

Contents of codes

Problems with codesCodes may be seen as inflexible and unfair sets ofrules that are not relevant to the ethical situationsemployees encounter


10 Professional ethics Page 77

Company codes Public interestAccountants in business


Professionalcodes

Professional codesProfessional codes stress theimportance of the public interestMost then set out Fundamental principles Conceptual framework Threats to compliance Safeguards

Fundamental principlesProfessional competencedue care ndash maintain knowledgecomply withstandardsIntegrity ndash straightforwardnesshonestyProfessional behaviour ndash avoid actions discrediting professionConfidentiality ndash dont disclose to third parties unless legalprofessionaldutyObjectivity ndash avoid influence by biasconflicts of interestundue influence

Advantages

Emphasise public interestconfidenceOnus on active thoughtInternational applicationCan include detailed guidanceprohibitionsPrescribe minimum behaviour

Disadvantages

Lack of focusPermit box-tickingDont capture regional variationsNot legally enforceableExamples interpreted as rules

Professional codes



Ethical threatsand safeguards

Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation

Entry requirements Training requirements CPD requirements Professional standards Professional monitoring Disciplinary procedures External review

Professional safeguards

Peer review Independent consultation Partnerstaff rotation Discussiondisclosure to audit committee Reperformance by another firm

Safeguards in practiceImportance of independenceIndependence promotes Reliability of financial information Credibility of financial information Value for money of audit Credibility of profession



SELF- REVIEW THREAT

General otherservices

Recent servicewith assurance

client

Other services

Corporatefinance

Internal auditservices

Tax services

Valuation services

Preparing accounting recordsand financial statements

Close businessrelationships

Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees

Loans and guarantees

Gifts and hospitality

Family and personal relationships

Partner on client board

Employment with assurance client

SELF-INTEREST THREAT




Professionalcodes

Advocacy threat

Conflicts of interest

Family relationships between client and firm Personal relationships between client and firm Long association with client Recent service with client Future employment with client

Familiarity threat

Close business relationships Family relationships Personal relationships Staff employed by client Litigation

Intimidation threat

Where accountants take clients part act as theiradvocate or will only earn fees from client ifsuccessful outcome is achieved (contingent fees)Examples include provision of legal service andcorporate finance advice

These can arise from accountants acting for clientswith whom they are in dispute eg over quality ofwork It can also arise through disputes between twoclients for whom accountants are acting





Professionalcodes

Acting with expertiseCompetent performance by accountant may bethreatened by lack of time lack of information insufficient training inadequate resources

Financial interests

Preparation and reporting of informationInformation should describe clearly nature ofbusiness transactions classify and record informationin timely and proper manner and represent factsaccurately

Share ownership share options and profit-relatedbonuses provide incentives to manipulateinformation Accountants may be offeredinducements to act illegally

Lack of honestygood faith Conflicts of interest Misallocation of resources Poor international risk management Loss of reputation

Problems with bribery

Bribery and corruptionBribery is giving value in return for influencecorruption also includes systems abuse bid givingand cartels

Measures to combat bribery include code of conductrisk assessment conduct of business rules andwhistleblowing questionable transactions




Professionalcodes

Public interestThe collective well-being of the community of peopleand institutions the accountant serves But lack ofstatutory definition can make it difficult to enforce

Critics have claimed profession acts against publicinterest in a number of ways

Accounting standards allow excessive leeway Ineffective auditing standards Emphasise confidentiality over public interest

Against public interest

ProfessionalismCompliance with relevant laws and regulations andavoidance of actions that may bring discredit onprofession

Influence of professionCritics have accused the profession of Getting the numbers wrong Failing to realise the assumptions used in

preparing accounts support a capitalist-authoritarian view of society


11 Corporate social responsibility

Topic List

Corporate citizenship

Ethical stances

Social responsibility

Social and environmental impacts

Environmental audits

In this chapter we examine organisations impact uponthe natural and human environment This has beenhighlighted as an important topic and it illustrates howvarious aspects of control systems (managementsystems internal audit and external reporting) areapplied


Social andenvironmental impacts

Environmentalaudits

Socialresponsibility

Ethical stances

Corporatecitizenship

Corporate citizenshipThe business strategy shaping the values under-pinning mission and choices made as the corporation engages with society Corporatesocial responsibility discussions are often interms of corporate citizenship focusing on rights(carrying on business lawfully) as well as responsibilities

Limited view

Extended view

Equivalent view

Minimising harm Maximising benefit Accountability and responsiveness to stakeholders

Core principles

Voluntary philanthropy corporate citizen engages with local communities andemployees mainly for self-interest

Focus on a broad range of stakeholders and response to demands of society andlegal requirements

Active social and political citizenship promotion of social civil and political rightsfilling void caused by lack of government action


11 Corporate social responsibilityPage 85


Environmentalaudits


Ethicalstances


Minimum compliance Government imposes wider constraints

Wider view of ethical responses Better for reputation Prevents more legal regulation

Short-term shareholderinterest

Long-term shareholderinterest

Ethical stance

Multiple stakeholder Shaper of society Building relationships Which stakeholders Which obligations

Constitution requirements Accountability Financial viability



Environmentalaudits


Ethical stances


Pristine capitalists

Expedients

Social contract proponents

Social ecologists

Socialists

Radical feminists

Private property rights paramount companies exist to make profitsand achieve economic efficiency

Acknowledgement of business excesses acceptance of limited socialand moral responsibilities

Survival depends on delivery of benefits to societygroups thatdetermine its power behaviour adheres to society norms

Modification needed of economic processes resulting in resourceexhaustion waste pollution

Societys framework should promote equality not requirements ofcapitalism

Need for emphasis on feminine values such as co-operation andreflection fundamental readjustment of society required

Deep ecologistsHuman rights to existence dont exceed other species rightsEconomic systems should not trade species survival v economicimperatives




Environmentalaudits


Ethicalstances


How organisations affectthe environment

Depletion ofnatural resources

Adverse visual andaural impacts

Air and wateremissions

Wastedisposal

Positivenegativehealth impacts

Raisingloweringlocal quality of life

Contribution toclimate change

Indirect impactsthrough supplychain



Environmentalaudits


Ethical stances


Environmental costspound

Waste management XRemediation XCompliance activities XPermit fees XEnvironmental training XRampD XMaintenance XLegal costs XEnvironmental assurance bonds XEnvironmental certification XNatural resource inputs XRecord keeping and reporting X__

X____

Remediationcompensation Future regulatory impacts Essential product improvements Employee health and safety Environmental knowledge acquisition Non-sustainable inputs Impaired assets

Contingencies

Stakeholders and reputation riskIncreasingly stakeholders are aware of environmentalimpacts and require businesses to do more to dealwith them Being known as a poor corporate citizencan pose a serious reputation risk



SustainabilitySustainability is ensuring that economicdevelopment meets the needs of the presentwithout compromising the future

Sustainability for organisations meansdeveloping strategies by which an organisa-tion only uses resources at rate that can bereplenished and emissions of waste dontexceed environmentrsquos ability to absorb them

For whom Other species of current populationIn what way NaturalsocialeconomicHow long Availability of raw materials Dependent on climate change

At what cost Presentation Substitutioncompensation possible

Fundamental change in perceptions required Harmony with natural world Sustain all species Continue to pursue economic growth

Strong sustainability

Catastrophe prevention Sustaining humanity Regulate resource usage Maintenance of existing system

Weak sustainability



Environmentalaudits


Ethical stances


The Global Reporting Initiative aims to develop Sustainability Reporting Guidelines for organisations to usewhen reporting on economic environmental and social dimensions of their activities products and services

Vision and strategy Profile Governance structure and management

systems GRI content index Performance indicators

Sustainability report

Full cost accountingFull cost accounting ultimately allows the incorpora-tion of all costsbenefits into accounting equationincluding environmental and social externalities

Direct economic impact ndash on key stakeholders Environmental ndash use of natural resources emissions

transport usage compliance with standards Labour practices ndash employment practices health and

safety training diversity Human rights ndash strategy non-discrimination workersrsquo

rights low-paid labour Society ndash community contribution political activities

competitive attitudes Products ndash customer health and safety advertising

privacy

GRI indicators



EMAS Emphasis on verified improvement and disclosureRequirements include Environmental policy statement On-site environmental review Environmental management system Environmental audits and actions Public environmental statement

Environmental control systemsControl systems should cover relevant functions andactivities Policy development and objectives Life-cycle assessment Compliance Waste and pollution minimisation RampD Performance reporting

Enhances transparency and accountability Promotes improvement in control systems Addresses investor worries about risk Enhances reputation Limits damage if incidents occur

Advantages of external reporting Integrated reportingIntegrated reporting links reporting on sustainabilityissues with reporting on financial results and operationsIt emphasises reporting on goals and strategies as wellas issues and impacts Businesses should show theirrelationships with capitals used (financial manufacturedhuman intellectual natural social)



Environmentalaudits


Ethical stances


Environmental auditAssesses how organisation is safeguarding the environment It should enhance management controlof environmental practice and compliance with internal policies and external reputation

Audit reviewAuditors will concentrate on a number of aspects thataffect environmental impact

Board knowledge Compliance procedures Environmental information systems Performance targets and review Implementation of previous recommendations True and fair reporting Environmental impact assessment of major

projects Surveys of organisations impact on targets SWOT analysis Quality management programme Eco-audit BS7750 compliance Supplier audits

Types of audit

Establish metrics Compare planneddesirable and actual

performance Report results

Audit work


Book Cover

Title

Copyright

Preface

Contents

Chapter 1 Scope of corporate governance

Definition

Concepts

Agency

Stakeholders

Main issues

Chapter 2 Approaches to corporate governance


Basis of guidance


Sarbanes-Oxley



Chapter 3 Corporate governance practice and reporting

Role of board

Board membership




Reporting

Chapter 4 Internal control systems

Control systems

Nature of risks

Control framework

Control limitations



Chapter 5 Risk attitudes and internal environment

Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification

Chapter 7 Risk assessment and response

Risk assessment

Risk responses

Control activities

Chapter 8 Information communication and monitoring


Monitoring

Internal audit

Audit committee


Chapter 9 Personal ethics

Ethical theories




Chapter 10 Professional ethics

Company codes

Professional codes



Public interest

Chapter 11 Corporate social responsibility


Ethical stances




Professional Paper P1Governance Risk and Ethics

(000)ACP1PC14_FP(Ho)qxp 5282014 1238 AM Page i



2014


ISBN 9781 4727 1129 8

e ISBN 9781 4727 1185 4


British Library


Published by






Page iii

ContentsPreface







Good luck


ContentsPreface

Page






6 Risks 47







Topic List

Definition

Concepts

Agency

Stakeholders

Main issues











(001)ACP1PC14_CH01qxp 5282014 1239 AM




























D

Power

Low High

Low

HighC

BA



Results of mapping































Secretary

Customers

Suppliers

Employees








Directors


Trade unions











External auditors

Regulators

Government

Stock exchanges


Small investors

RecipientsDonors













Topic List


Basis of guidance


Sarbanes-Oxley










Basis ofguidance





Corporate scandals








Basis ofguidance





Direct behaviour

Key Principles






Basis ofguidance








Insider Outsider










OECD principles











Basis ofguidance








Weaknesses at Enron






















Basis ofguidance



community



stakeholders










Objectives

Mission statements

Ethical codes

Governance codes



Impact of CSR






Basis ofguidance





SORP Set outcomes


Donors Government







Topic List

Role of board

Board membership




Reporting






Boardmembership














Board appraisal






Multi-tier boards





Boardmembership





Audit (Chapter 8)




Investment analysis

Risk management




Running board




Board appraisal

Board development








Boardmembership



Advantages of NEDs











Boardmembership


























Boardmembership






















Boardmembership









Benefits



Topic List

Control systems

Nature of risks

Control framework

Control limitations





Controlsystems



Control limitations

Controlframework

Nature ofrisks

















Controlsystems



Control limitations

Controlframework

Nature ofrisks









Controlsystems



Control limitations

Controlframework

Nature ofrisks

CONTROL FRAMEWORK



Purposes

Objectives


Acceptable risks







Controlsystems



Control limitations

Controlframework

Nature ofrisks



Managementbypass





Controlsystems



Control limitations

Controlframework

Nature ofrisks




ERM benefits






Monitoring

STRATEGIC

OPERATIONS

REPORTING

COMPLIANCE





Controlsystems



Control limitations

Controlframework

Nature ofrisks


resources


ASSESSMENT




Topic List

Risk attributes




Objective setting



Objectivesetting


Internalenvironment


Risk attributes



Riskreturn


risk



Personal views

Risk attributes



Objectivesetting


Internalenvironment


Risk attributes


RISK

CONCERNS


Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes



Risk environment

















Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances






2014


ISBN 9781 4727 1129 8

e ISBN 9781 4727 1185 4


British Library


Published by






Page iii

ContentsPreface







Good luck


ContentsPreface

Page






6 Risks 47







Topic List

Definition

Concepts

Agency

Stakeholders

Main issues







































D

Power

Low High

Low

HighC

BA



Results of mapping































Secretary

Customers

Suppliers

Employees








Directors


Trade unions











External auditors

Regulators

Government

Stock exchanges


Small investors

RecipientsDonors













Topic List


Basis of guidance


Sarbanes-Oxley










Basis ofguidance





Corporate scandals








Basis ofguidance





Direct behaviour

Key Principles






Basis ofguidance








Insider Outsider










OECD principles











Basis ofguidance








Weaknesses at Enron






















Basis ofguidance



community



stakeholders










Objectives

Mission statements

Ethical codes

Governance codes



Impact of CSR






Basis ofguidance





SORP Set outcomes


Donors Government







Topic List

Role of board

Board membership




Reporting






Boardmembership














Board appraisal






Multi-tier boards





Boardmembership





Audit (Chapter 8)




Investment analysis

Risk management




Running board




Board appraisal

Board development








Boardmembership



Advantages of NEDs











Boardmembership


























Boardmembership






















Boardmembership









Benefits



Topic List

Control systems

Nature of risks

Control framework

Control limitations





Controlsystems



Control limitations

Controlframework

Nature ofrisks

















Controlsystems



Control limitations

Controlframework

Nature ofrisks









Controlsystems



Control limitations

Controlframework

Nature ofrisks

CONTROL FRAMEWORK



Purposes

Objectives


Acceptable risks







Controlsystems



Control limitations

Controlframework

Nature ofrisks



Managementbypass





Controlsystems



Control limitations

Controlframework

Nature ofrisks




ERM benefits






Monitoring

STRATEGIC

OPERATIONS

REPORTING

COMPLIANCE





Controlsystems



Control limitations

Controlframework

Nature ofrisks


resources


ASSESSMENT




Topic List

Risk attributes




Objective setting



Objectivesetting


Internalenvironment


Risk attributes



Riskreturn


risk



Personal views

Risk attributes



Objectivesetting


Internalenvironment


Risk attributes


RISK

CONCERNS


Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes



Risk environment

















Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances




Page iii

ContentsPreface







Good luck


ContentsPreface

Page






6 Risks 47







Topic List

Definition

Concepts

Agency

Stakeholders

Main issues































(001)ACP1PC14_CH01qxp 5282014 1239 AM








D

Power

Low High

Low

HighC

BA



Results of mapping































Secretary

Customers

Suppliers

Employees








Directors


Trade unions











External auditors

Regulators

Government

Stock exchanges


Small investors

RecipientsDonors













Topic List


Basis of guidance


Sarbanes-Oxley










Basis ofguidance





Corporate scandals








Basis ofguidance





Direct behaviour

Key Principles






Basis ofguidance








Insider Outsider










OECD principles











Basis ofguidance








Weaknesses at Enron






















Basis ofguidance



community



stakeholders










Objectives

Mission statements

Ethical codes

Governance codes



Impact of CSR






Basis ofguidance





SORP Set outcomes


Donors Government







Topic List

Role of board

Board membership




Reporting






Boardmembership














Board appraisal






Multi-tier boards





Boardmembership





Audit (Chapter 8)




Investment analysis

Risk management




Running board




Board appraisal

Board development








Boardmembership



Advantages of NEDs











Boardmembership


























Boardmembership






















Boardmembership









Benefits



Topic List

Control systems

Nature of risks

Control framework

Control limitations





Controlsystems



Control limitations

Controlframework

Nature ofrisks

















Controlsystems



Control limitations

Controlframework

Nature ofrisks









Controlsystems



Control limitations

Controlframework

Nature ofrisks

CONTROL FRAMEWORK



Purposes

Objectives


Acceptable risks







Controlsystems



Control limitations

Controlframework

Nature ofrisks



Managementbypass





Controlsystems



Control limitations

Controlframework

Nature ofrisks




ERM benefits






Monitoring

STRATEGIC

OPERATIONS

REPORTING

COMPLIANCE





Controlsystems



Control limitations

Controlframework

Nature ofrisks


resources


ASSESSMENT




Topic List

Risk attributes




Objective setting



Objectivesetting


Internalenvironment


Risk attributes



Riskreturn


risk



Personal views

Risk attributes



Objectivesetting


Internalenvironment


Risk attributes


RISK

CONCERNS


Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes



Risk environment

















Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances




ContentsPreface

Page






6 Risks 47







Topic List

Definition

Concepts

Agency

Stakeholders

Main issues







































D

Power

Low High

Low

HighC

BA



Results of mapping































Secretary

Customers

Suppliers

Employees








Directors


Trade unions











External auditors

Regulators

Government

Stock exchanges


Small investors

RecipientsDonors













Topic List


Basis of guidance


Sarbanes-Oxley










Basis ofguidance





Corporate scandals








Basis ofguidance





Direct behaviour

Key Principles






Basis ofguidance








Insider Outsider










OECD principles











Basis ofguidance








Weaknesses at Enron






















Basis ofguidance



community



stakeholders










Objectives

Mission statements

Ethical codes

Governance codes



Impact of CSR






Basis ofguidance





SORP Set outcomes


Donors Government







Topic List

Role of board

Board membership




Reporting






Boardmembership














Board appraisal






Multi-tier boards





Boardmembership





Audit (Chapter 8)




Investment analysis

Risk management




Running board




Board appraisal

Board development








Boardmembership



Advantages of NEDs











Boardmembership


























Boardmembership






















Boardmembership









Benefits



Topic List

Control systems

Nature of risks

Control framework

Control limitations





Controlsystems



Control limitations

Controlframework

Nature ofrisks

















Controlsystems



Control limitations

Controlframework

Nature ofrisks









Controlsystems



Control limitations

Controlframework

Nature ofrisks

CONTROL FRAMEWORK



Purposes

Objectives


Acceptable risks







Controlsystems



Control limitations

Controlframework

Nature ofrisks



Managementbypass





Controlsystems



Control limitations

Controlframework

Nature ofrisks




ERM benefits






Monitoring

STRATEGIC

OPERATIONS

REPORTING

COMPLIANCE





Controlsystems



Control limitations

Controlframework

Nature ofrisks


resources


ASSESSMENT




Topic List

Risk attributes




Objective setting



Objectivesetting


Internalenvironment


Risk attributes



Riskreturn


risk



Personal views

Risk attributes



Objectivesetting


Internalenvironment


Risk attributes


RISK

CONCERNS


Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes



Risk environment

















Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances





Topic List

Definition

Concepts

Agency

Stakeholders

Main issues







































D

Power

Low High

Low

HighC

BA



Results of mapping














(001)ACP1PC14_CH01qxp 5282014 1239 AM

















Secretary

Customers

Suppliers

Employees








Directors


Trade unions











External auditors

Regulators

Government

Stock exchanges


Small investors

RecipientsDonors













Topic List


Basis of guidance


Sarbanes-Oxley










Basis ofguidance





Corporate scandals








Basis ofguidance





Direct behaviour

Key Principles






Basis ofguidance








Insider Outsider










OECD principles











Basis ofguidance








Weaknesses at Enron






















Basis ofguidance



community



stakeholders










Objectives

Mission statements

Ethical codes

Governance codes



Impact of CSR






Basis ofguidance





SORP Set outcomes


Donors Government







Topic List

Role of board

Board membership




Reporting






Boardmembership














Board appraisal






Multi-tier boards





Boardmembership





Audit (Chapter 8)




Investment analysis

Risk management




Running board




Board appraisal

Board development








Boardmembership



Advantages of NEDs











Boardmembership


























Boardmembership






















Boardmembership









Benefits



Topic List

Control systems

Nature of risks

Control framework

Control limitations





Controlsystems



Control limitations

Controlframework

Nature ofrisks

















Controlsystems



Control limitations

Controlframework

Nature ofrisks









Controlsystems



Control limitations

Controlframework

Nature ofrisks

CONTROL FRAMEWORK



Purposes

Objectives


Acceptable risks







Controlsystems



Control limitations

Controlframework

Nature ofrisks



Managementbypass





Controlsystems



Control limitations

Controlframework

Nature ofrisks




ERM benefits






Monitoring

STRATEGIC

OPERATIONS

REPORTING

COMPLIANCE





Controlsystems



Control limitations

Controlframework

Nature ofrisks


resources


ASSESSMENT




Topic List

Risk attributes




Objective setting



Objectivesetting


Internalenvironment


Risk attributes



Riskreturn


risk



Personal views

Risk attributes



Objectivesetting


Internalenvironment


Risk attributes


RISK

CONCERNS


Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes



Risk environment

















Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances








































D

Power

Low High

Low

HighC

BA



Results of mapping































Secretary

Customers

Suppliers

Employees








Directors


Trade unions











External auditors

Regulators

Government

Stock exchanges


Small investors

RecipientsDonors













Topic List


Basis of guidance


Sarbanes-Oxley










Basis ofguidance





Corporate scandals








Basis ofguidance





Direct behaviour

Key Principles






Basis ofguidance








Insider Outsider










OECD principles











Basis ofguidance








Weaknesses at Enron






















Basis ofguidance



community



stakeholders










Objectives

Mission statements

Ethical codes

Governance codes



Impact of CSR






Basis ofguidance





SORP Set outcomes


Donors Government







Topic List

Role of board

Board membership




Reporting






Boardmembership














Board appraisal






Multi-tier boards





Boardmembership





Audit (Chapter 8)




Investment analysis

Risk management




Running board




Board appraisal

Board development








Boardmembership



Advantages of NEDs











Boardmembership


























Boardmembership






















Boardmembership









Benefits



Topic List

Control systems

Nature of risks

Control framework

Control limitations





Controlsystems



Control limitations

Controlframework

Nature ofrisks

















Controlsystems



Control limitations

Controlframework

Nature ofrisks









Controlsystems



Control limitations

Controlframework

Nature ofrisks

CONTROL FRAMEWORK



Purposes

Objectives


Acceptable risks







Controlsystems



Control limitations

Controlframework

Nature ofrisks



Managementbypass





Controlsystems



Control limitations

Controlframework

Nature ofrisks




ERM benefits






Monitoring

STRATEGIC

OPERATIONS

REPORTING

COMPLIANCE





Controlsystems



Control limitations

Controlframework

Nature ofrisks


resources


ASSESSMENT




Topic List

Risk attributes




Objective setting



Objectivesetting


Internalenvironment


Risk attributes



Riskreturn


risk



Personal views

Risk attributes



Objectivesetting


Internalenvironment


Risk attributes


RISK

CONCERNS


Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes



Risk environment

















Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances































D

Power

Low High

Low

HighC

BA



Results of mapping































Secretary

Customers

Suppliers

Employees








Directors


Trade unions

(001)ACP1PC14_CH01qxp 5282014 1239 AM










External auditors

Regulators

Government

Stock exchanges


Small investors

RecipientsDonors













Topic List


Basis of guidance


Sarbanes-Oxley










Basis ofguidance





Corporate scandals








Basis ofguidance





Direct behaviour

Key Principles






Basis ofguidance








Insider Outsider










OECD principles











Basis ofguidance








Weaknesses at Enron






















Basis ofguidance



community



stakeholders










Objectives

Mission statements

Ethical codes

Governance codes



Impact of CSR






Basis ofguidance





SORP Set outcomes


Donors Government







Topic List

Role of board

Board membership




Reporting






Boardmembership














Board appraisal






Multi-tier boards





Boardmembership





Audit (Chapter 8)




Investment analysis

Risk management




Running board




Board appraisal

Board development








Boardmembership



Advantages of NEDs











Boardmembership


























Boardmembership






















Boardmembership









Benefits



Topic List

Control systems

Nature of risks

Control framework

Control limitations





Controlsystems



Control limitations

Controlframework

Nature ofrisks

















Controlsystems



Control limitations

Controlframework

Nature ofrisks









Controlsystems



Control limitations

Controlframework

Nature ofrisks

CONTROL FRAMEWORK



Purposes

Objectives


Acceptable risks







Controlsystems



Control limitations

Controlframework

Nature ofrisks



Managementbypass





Controlsystems



Control limitations

Controlframework

Nature ofrisks




ERM benefits






Monitoring

STRATEGIC

OPERATIONS

REPORTING

COMPLIANCE





Controlsystems



Control limitations

Controlframework

Nature ofrisks


resources


ASSESSMENT




Topic List

Risk attributes




Objective setting



Objectivesetting


Internalenvironment


Risk attributes



Riskreturn


risk



Personal views

Risk attributes



Objectivesetting


Internalenvironment


Risk attributes


RISK

CONCERNS


Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes



Risk environment

















Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances






















D

Power

Low High

Low

HighC

BA



Results of mapping































Secretary

Customers

Suppliers

Employees








Directors


Trade unions











External auditors

Regulators

Government

Stock exchanges


Small investors

RecipientsDonors













Topic List


Basis of guidance


Sarbanes-Oxley










Basis ofguidance





Corporate scandals








Basis ofguidance





Direct behaviour

Key Principles






Basis ofguidance








Insider Outsider










OECD principles











Basis ofguidance








Weaknesses at Enron






















Basis ofguidance



community



stakeholders










Objectives

Mission statements

Ethical codes

Governance codes



Impact of CSR






Basis ofguidance





SORP Set outcomes


Donors Government







Topic List

Role of board

Board membership




Reporting






Boardmembership














Board appraisal






Multi-tier boards





Boardmembership





Audit (Chapter 8)




Investment analysis

Risk management




Running board




Board appraisal

Board development








Boardmembership



Advantages of NEDs











Boardmembership


























Boardmembership






















Boardmembership









Benefits



Topic List

Control systems

Nature of risks

Control framework

Control limitations





Controlsystems



Control limitations

Controlframework

Nature ofrisks

















Controlsystems



Control limitations

Controlframework

Nature ofrisks









Controlsystems



Control limitations

Controlframework

Nature ofrisks

CONTROL FRAMEWORK



Purposes

Objectives


Acceptable risks







Controlsystems



Control limitations

Controlframework

Nature ofrisks



Managementbypass





Controlsystems



Control limitations

Controlframework

Nature ofrisks




ERM benefits






Monitoring

STRATEGIC

OPERATIONS

REPORTING

COMPLIANCE





Controlsystems



Control limitations

Controlframework

Nature ofrisks


resources


ASSESSMENT




Topic List

Risk attributes




Objective setting



Objectivesetting


Internalenvironment


Risk attributes



Riskreturn


risk



Personal views

Risk attributes



Objectivesetting


Internalenvironment


Risk attributes


RISK

CONCERNS


Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes



Risk environment

















Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances











D

Power

Low High

Low

HighC

BA



Results of mapping































Secretary

Customers

Suppliers

Employees








Directors


Trade unions











External auditors

Regulators

Government

Stock exchanges


Small investors

RecipientsDonors











(001)ACP1PC14_CH01qxp 5282014 1239 AM


Topic List


Basis of guidance


Sarbanes-Oxley










Basis ofguidance





Corporate scandals








Basis ofguidance





Direct behaviour

Key Principles






Basis ofguidance








Insider Outsider










OECD principles











Basis ofguidance








Weaknesses at Enron






















Basis ofguidance



community



stakeholders










Objectives

Mission statements

Ethical codes

Governance codes



Impact of CSR






Basis ofguidance





SORP Set outcomes


Donors Government







Topic List

Role of board

Board membership




Reporting






Boardmembership














Board appraisal






Multi-tier boards





Boardmembership





Audit (Chapter 8)




Investment analysis

Risk management




Running board




Board appraisal

Board development








Boardmembership



Advantages of NEDs











Boardmembership


























Boardmembership






















Boardmembership









Benefits



Topic List

Control systems

Nature of risks

Control framework

Control limitations





Controlsystems



Control limitations

Controlframework

Nature ofrisks

















Controlsystems



Control limitations

Controlframework

Nature ofrisks









Controlsystems



Control limitations

Controlframework

Nature ofrisks

CONTROL FRAMEWORK



Purposes

Objectives


Acceptable risks







Controlsystems



Control limitations

Controlframework

Nature ofrisks



Managementbypass





Controlsystems



Control limitations

Controlframework

Nature ofrisks




ERM benefits






Monitoring

STRATEGIC

OPERATIONS

REPORTING

COMPLIANCE





Controlsystems



Control limitations

Controlframework

Nature ofrisks


resources


ASSESSMENT




Topic List

Risk attributes




Objective setting



Objectivesetting


Internalenvironment


Risk attributes



Riskreturn


risk



Personal views

Risk attributes



Objectivesetting


Internalenvironment


Risk attributes


RISK

CONCERNS


Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes



Risk environment

















Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances

































Secretary

Customers

Suppliers

Employees








Directors


Trade unions











External auditors

Regulators

Government

Stock exchanges


Small investors

RecipientsDonors













Topic List


Basis of guidance


Sarbanes-Oxley





(002)ACP1PC14_CH02qxp 5282014 1239 AM





Basis ofguidance





Corporate scandals








Basis ofguidance





Direct behaviour

Key Principles






Basis ofguidance








Insider Outsider










OECD principles











Basis ofguidance








Weaknesses at Enron






















Basis ofguidance



community



stakeholders










Objectives

Mission statements

Ethical codes

Governance codes



Impact of CSR






Basis ofguidance





SORP Set outcomes


Donors Government







Topic List

Role of board

Board membership




Reporting






Boardmembership














Board appraisal






Multi-tier boards





Boardmembership





Audit (Chapter 8)




Investment analysis

Risk management




Running board




Board appraisal

Board development








Boardmembership



Advantages of NEDs











Boardmembership


























Boardmembership






















Boardmembership









Benefits



Topic List

Control systems

Nature of risks

Control framework

Control limitations





Controlsystems



Control limitations

Controlframework

Nature ofrisks

















Controlsystems



Control limitations

Controlframework

Nature ofrisks









Controlsystems



Control limitations

Controlframework

Nature ofrisks

CONTROL FRAMEWORK



Purposes

Objectives


Acceptable risks







Controlsystems



Control limitations

Controlframework

Nature ofrisks



Managementbypass





Controlsystems



Control limitations

Controlframework

Nature ofrisks




ERM benefits






Monitoring

STRATEGIC

OPERATIONS

REPORTING

COMPLIANCE





Controlsystems



Control limitations

Controlframework

Nature ofrisks


resources


ASSESSMENT




Topic List

Risk attributes




Objective setting



Objectivesetting


Internalenvironment


Risk attributes



Riskreturn


risk



Personal views

Risk attributes



Objectivesetting


Internalenvironment


Risk attributes


RISK

CONCERNS


Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes



Risk environment

















Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances




















Secretary

Customers

Suppliers

Employees








Directors


Trade unions











External auditors

Regulators

Government

Stock exchanges


Small investors

RecipientsDonors













Topic List


Basis of guidance


Sarbanes-Oxley










Basis ofguidance





Corporate scandals


(002)ACP1PC14_CH02qxp 5282014 1239 AM






Basis ofguidance





Direct behaviour

Key Principles






Basis ofguidance








Insider Outsider










OECD principles











Basis ofguidance








Weaknesses at Enron






















Basis ofguidance



community



stakeholders










Objectives

Mission statements

Ethical codes

Governance codes



Impact of CSR






Basis ofguidance





SORP Set outcomes


Donors Government







Topic List

Role of board

Board membership




Reporting






Boardmembership














Board appraisal






Multi-tier boards





Boardmembership





Audit (Chapter 8)




Investment analysis

Risk management




Running board




Board appraisal

Board development








Boardmembership



Advantages of NEDs











Boardmembership


























Boardmembership






















Boardmembership









Benefits



Topic List

Control systems

Nature of risks

Control framework

Control limitations





Controlsystems



Control limitations

Controlframework

Nature ofrisks

















Controlsystems



Control limitations

Controlframework

Nature ofrisks









Controlsystems



Control limitations

Controlframework

Nature ofrisks

CONTROL FRAMEWORK



Purposes

Objectives


Acceptable risks







Controlsystems



Control limitations

Controlframework

Nature ofrisks



Managementbypass





Controlsystems



Control limitations

Controlframework

Nature ofrisks




ERM benefits






Monitoring

STRATEGIC

OPERATIONS

REPORTING

COMPLIANCE





Controlsystems



Control limitations

Controlframework

Nature ofrisks


resources


ASSESSMENT




Topic List

Risk attributes




Objective setting



Objectivesetting


Internalenvironment


Risk attributes



Riskreturn


risk



Personal views

Risk attributes



Objectivesetting


Internalenvironment


Risk attributes


RISK

CONCERNS


Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes



Risk environment

















Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances





Secretary

Customers

Suppliers

Employees








Directors


Trade unions











External auditors

Regulators

Government

Stock exchanges


Small investors

RecipientsDonors













Topic List


Basis of guidance


Sarbanes-Oxley










Basis ofguidance





Corporate scandals








Basis ofguidance





Direct behaviour

Key Principles






Basis ofguidance








Insider Outsider










OECD principles











Basis ofguidance








Weaknesses at Enron






















Basis ofguidance



community



stakeholders










Objectives

Mission statements

Ethical codes

Governance codes



Impact of CSR






Basis ofguidance





SORP Set outcomes


Donors Government







Topic List

Role of board

Board membership




Reporting






Boardmembership














Board appraisal






Multi-tier boards





Boardmembership





Audit (Chapter 8)




Investment analysis

Risk management




Running board




Board appraisal

Board development








Boardmembership



Advantages of NEDs











Boardmembership


























Boardmembership






















Boardmembership









Benefits



Topic List

Control systems

Nature of risks

Control framework

Control limitations





Controlsystems



Control limitations

Controlframework

Nature ofrisks

















Controlsystems



Control limitations

Controlframework

Nature ofrisks









Controlsystems



Control limitations

Controlframework

Nature ofrisks

CONTROL FRAMEWORK



Purposes

Objectives


Acceptable risks







Controlsystems



Control limitations

Controlframework

Nature ofrisks



Managementbypass





Controlsystems



Control limitations

Controlframework

Nature ofrisks




ERM benefits






Monitoring

STRATEGIC

OPERATIONS

REPORTING

COMPLIANCE





Controlsystems



Control limitations

Controlframework

Nature ofrisks


resources


ASSESSMENT




Topic List

Risk attributes




Objective setting



Objectivesetting


Internalenvironment


Risk attributes



Riskreturn


risk



Personal views

Risk attributes



Objectivesetting


Internalenvironment


Risk attributes


RISK

CONCERNS


Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes



Risk environment

















Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances













External auditors

Regulators

Government

Stock exchanges


Small investors

RecipientsDonors













Topic List


Basis of guidance


Sarbanes-Oxley










Basis ofguidance





Corporate scandals








Basis ofguidance





Direct behaviour

Key Principles






Basis ofguidance








Insider Outsider



(002)ACP1PC14_CH02qxp 5282014 1239 AM







OECD principles











Basis ofguidance








Weaknesses at Enron






















Basis ofguidance



community



stakeholders










Objectives

Mission statements

Ethical codes

Governance codes



Impact of CSR






Basis ofguidance





SORP Set outcomes


Donors Government







Topic List

Role of board

Board membership




Reporting






Boardmembership














Board appraisal






Multi-tier boards





Boardmembership





Audit (Chapter 8)




Investment analysis

Risk management




Running board




Board appraisal

Board development








Boardmembership



Advantages of NEDs











Boardmembership


























Boardmembership






















Boardmembership









Benefits



Topic List

Control systems

Nature of risks

Control framework

Control limitations





Controlsystems



Control limitations

Controlframework

Nature ofrisks

















Controlsystems



Control limitations

Controlframework

Nature ofrisks









Controlsystems



Control limitations

Controlframework

Nature ofrisks

CONTROL FRAMEWORK



Purposes

Objectives


Acceptable risks







Controlsystems



Control limitations

Controlframework

Nature ofrisks



Managementbypass





Controlsystems



Control limitations

Controlframework

Nature ofrisks




ERM benefits






Monitoring

STRATEGIC

OPERATIONS

REPORTING

COMPLIANCE





Controlsystems



Control limitations

Controlframework

Nature ofrisks


resources


ASSESSMENT




Topic List

Risk attributes




Objective setting



Objectivesetting


Internalenvironment


Risk attributes



Riskreturn


risk



Personal views

Risk attributes



Objectivesetting


Internalenvironment


Risk attributes


RISK

CONCERNS


Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes



Risk environment

















Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances















Topic List


Basis of guidance


Sarbanes-Oxley










Basis ofguidance





Corporate scandals








Basis ofguidance





Direct behaviour

Key Principles






Basis ofguidance








Insider Outsider










OECD principles











Basis ofguidance








Weaknesses at Enron






















Basis ofguidance



community



stakeholders










Objectives

Mission statements

Ethical codes

Governance codes



Impact of CSR






Basis ofguidance





SORP Set outcomes


Donors Government







Topic List

Role of board

Board membership




Reporting






Boardmembership














Board appraisal






Multi-tier boards





Boardmembership





Audit (Chapter 8)




Investment analysis

Risk management




Running board




Board appraisal

Board development








Boardmembership



Advantages of NEDs











Boardmembership


























Boardmembership






















Boardmembership









Benefits



Topic List

Control systems

Nature of risks

Control framework

Control limitations





Controlsystems



Control limitations

Controlframework

Nature ofrisks

















Controlsystems



Control limitations

Controlframework

Nature ofrisks









Controlsystems



Control limitations

Controlframework

Nature ofrisks

CONTROL FRAMEWORK



Purposes

Objectives


Acceptable risks







Controlsystems



Control limitations

Controlframework

Nature ofrisks



Managementbypass





Controlsystems



Control limitations

Controlframework

Nature ofrisks




ERM benefits






Monitoring

STRATEGIC

OPERATIONS

REPORTING

COMPLIANCE





Controlsystems



Control limitations

Controlframework

Nature ofrisks


resources


ASSESSMENT




Topic List

Risk attributes




Objective setting



Objectivesetting


Internalenvironment


Risk attributes



Riskreturn


risk



Personal views

Risk attributes



Objectivesetting


Internalenvironment


Risk attributes


RISK

CONCERNS


Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes



Risk environment

















Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances





Topic List


Basis of guidance


Sarbanes-Oxley










Basis ofguidance





Corporate scandals








Basis ofguidance





Direct behaviour

Key Principles






Basis ofguidance








Insider Outsider










OECD principles











Basis ofguidance








Weaknesses at Enron






(002)ACP1PC14_CH02qxp 5282014 1239 AM
















Basis ofguidance



community



stakeholders










Objectives

Mission statements

Ethical codes

Governance codes



Impact of CSR






Basis ofguidance





SORP Set outcomes


Donors Government







Topic List

Role of board

Board membership




Reporting






Boardmembership














Board appraisal






Multi-tier boards





Boardmembership





Audit (Chapter 8)




Investment analysis

Risk management




Running board




Board appraisal

Board development








Boardmembership



Advantages of NEDs











Boardmembership


























Boardmembership






















Boardmembership









Benefits



Topic List

Control systems

Nature of risks

Control framework

Control limitations





Controlsystems



Control limitations

Controlframework

Nature ofrisks

















Controlsystems



Control limitations

Controlframework

Nature ofrisks









Controlsystems



Control limitations

Controlframework

Nature ofrisks

CONTROL FRAMEWORK



Purposes

Objectives


Acceptable risks







Controlsystems



Control limitations

Controlframework

Nature ofrisks



Managementbypass





Controlsystems



Control limitations

Controlframework

Nature ofrisks




ERM benefits






Monitoring

STRATEGIC

OPERATIONS

REPORTING

COMPLIANCE





Controlsystems



Control limitations

Controlframework

Nature ofrisks


resources


ASSESSMENT




Topic List

Risk attributes




Objective setting



Objectivesetting


Internalenvironment


Risk attributes



Riskreturn


risk



Personal views

Risk attributes



Objectivesetting


Internalenvironment


Risk attributes


RISK

CONCERNS


Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes



Risk environment

















Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances








Basis ofguidance





Corporate scandals








Basis ofguidance





Direct behaviour

Key Principles






Basis ofguidance








Insider Outsider










OECD principles











Basis ofguidance








Weaknesses at Enron






















Basis ofguidance



community



stakeholders










Objectives

Mission statements

Ethical codes

Governance codes



Impact of CSR






Basis ofguidance





SORP Set outcomes


Donors Government







Topic List

Role of board

Board membership




Reporting






Boardmembership














Board appraisal






Multi-tier boards





Boardmembership





Audit (Chapter 8)




Investment analysis

Risk management




Running board




Board appraisal

Board development








Boardmembership



Advantages of NEDs











Boardmembership


























Boardmembership






















Boardmembership









Benefits



Topic List

Control systems

Nature of risks

Control framework

Control limitations





Controlsystems



Control limitations

Controlframework

Nature ofrisks

















Controlsystems



Control limitations

Controlframework

Nature ofrisks









Controlsystems



Control limitations

Controlframework

Nature ofrisks

CONTROL FRAMEWORK



Purposes

Objectives


Acceptable risks







Controlsystems



Control limitations

Controlframework

Nature ofrisks



Managementbypass





Controlsystems



Control limitations

Controlframework

Nature ofrisks




ERM benefits






Monitoring

STRATEGIC

OPERATIONS

REPORTING

COMPLIANCE





Controlsystems



Control limitations

Controlframework

Nature ofrisks


resources


ASSESSMENT




Topic List

Risk attributes




Objective setting



Objectivesetting


Internalenvironment


Risk attributes



Riskreturn


risk



Personal views

Risk attributes



Objectivesetting


Internalenvironment


Risk attributes


RISK

CONCERNS


Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes



Risk environment

















Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances









Basis ofguidance





Direct behaviour

Key Principles






Basis ofguidance








Insider Outsider










OECD principles











Basis ofguidance








Weaknesses at Enron






















Basis ofguidance



community



stakeholders




(002)ACP1PC14_CH02qxp 5282014 1239 AM






Objectives

Mission statements

Ethical codes

Governance codes



Impact of CSR






Basis ofguidance





SORP Set outcomes


Donors Government







Topic List

Role of board

Board membership




Reporting






Boardmembership














Board appraisal






Multi-tier boards





Boardmembership





Audit (Chapter 8)




Investment analysis

Risk management




Running board




Board appraisal

Board development








Boardmembership



Advantages of NEDs











Boardmembership


























Boardmembership






















Boardmembership









Benefits



Topic List

Control systems

Nature of risks

Control framework

Control limitations





Controlsystems



Control limitations

Controlframework

Nature ofrisks

















Controlsystems



Control limitations

Controlframework

Nature ofrisks









Controlsystems



Control limitations

Controlframework

Nature ofrisks

CONTROL FRAMEWORK



Purposes

Objectives


Acceptable risks







Controlsystems



Control limitations

Controlframework

Nature ofrisks



Managementbypass





Controlsystems



Control limitations

Controlframework

Nature ofrisks




ERM benefits






Monitoring

STRATEGIC

OPERATIONS

REPORTING

COMPLIANCE





Controlsystems



Control limitations

Controlframework

Nature ofrisks


resources


ASSESSMENT




Topic List

Risk attributes




Objective setting



Objectivesetting


Internalenvironment


Risk attributes



Riskreturn


risk



Personal views

Risk attributes



Objectivesetting


Internalenvironment


Risk attributes


RISK

CONCERNS


Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes



Risk environment

















Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances








Basis ofguidance








Insider Outsider










OECD principles











Basis ofguidance








Weaknesses at Enron






















Basis ofguidance



community



stakeholders










Objectives

Mission statements

Ethical codes

Governance codes



Impact of CSR






Basis ofguidance





SORP Set outcomes


Donors Government







Topic List

Role of board

Board membership




Reporting






Boardmembership














Board appraisal






Multi-tier boards





Boardmembership





Audit (Chapter 8)




Investment analysis

Risk management




Running board




Board appraisal

Board development








Boardmembership



Advantages of NEDs











Boardmembership


























Boardmembership






















Boardmembership









Benefits



Topic List

Control systems

Nature of risks

Control framework

Control limitations





Controlsystems



Control limitations

Controlframework

Nature ofrisks

















Controlsystems



Control limitations

Controlframework

Nature ofrisks









Controlsystems



Control limitations

Controlframework

Nature ofrisks

CONTROL FRAMEWORK



Purposes

Objectives


Acceptable risks







Controlsystems



Control limitations

Controlframework

Nature ofrisks



Managementbypass





Controlsystems



Control limitations

Controlframework

Nature ofrisks




ERM benefits






Monitoring

STRATEGIC

OPERATIONS

REPORTING

COMPLIANCE





Controlsystems



Control limitations

Controlframework

Nature ofrisks


resources


ASSESSMENT




Topic List

Risk attributes




Objective setting



Objectivesetting


Internalenvironment


Risk attributes



Riskreturn


risk



Personal views

Risk attributes



Objectivesetting


Internalenvironment


Risk attributes


RISK

CONCERNS


Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes



Risk environment

















Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances










OECD principles











Basis ofguidance








Weaknesses at Enron






















Basis ofguidance



community



stakeholders










Objectives

Mission statements

Ethical codes

Governance codes



Impact of CSR






Basis ofguidance





SORP Set outcomes


Donors Government





(002)ACP1PC14_CH02qxp 5282014 1239 AM


Topic List

Role of board

Board membership




Reporting






Boardmembership














Board appraisal






Multi-tier boards





Boardmembership





Audit (Chapter 8)




Investment analysis

Risk management




Running board




Board appraisal

Board development








Boardmembership



Advantages of NEDs











Boardmembership


























Boardmembership






















Boardmembership









Benefits



Topic List

Control systems

Nature of risks

Control framework

Control limitations





Controlsystems



Control limitations

Controlframework

Nature ofrisks

















Controlsystems



Control limitations

Controlframework

Nature ofrisks









Controlsystems



Control limitations

Controlframework

Nature ofrisks

CONTROL FRAMEWORK



Purposes

Objectives


Acceptable risks







Controlsystems



Control limitations

Controlframework

Nature ofrisks



Managementbypass





Controlsystems



Control limitations

Controlframework

Nature ofrisks




ERM benefits






Monitoring

STRATEGIC

OPERATIONS

REPORTING

COMPLIANCE





Controlsystems



Control limitations

Controlframework

Nature ofrisks


resources


ASSESSMENT




Topic List

Risk attributes




Objective setting



Objectivesetting


Internalenvironment


Risk attributes



Riskreturn


risk



Personal views

Risk attributes



Objectivesetting


Internalenvironment


Risk attributes


RISK

CONCERNS


Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes



Risk environment

















Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances








Basis ofguidance








Weaknesses at Enron






















Basis ofguidance



community



stakeholders










Objectives

Mission statements

Ethical codes

Governance codes



Impact of CSR






Basis ofguidance





SORP Set outcomes


Donors Government







Topic List

Role of board

Board membership




Reporting


(003)ACP1PC14_CH03qxp 5282014 1240 AM




Boardmembership














Board appraisal






Multi-tier boards





Boardmembership





Audit (Chapter 8)




Investment analysis

Risk management




Running board




Board appraisal

Board development








Boardmembership



Advantages of NEDs











Boardmembership


























Boardmembership






















Boardmembership









Benefits



Topic List

Control systems

Nature of risks

Control framework

Control limitations





Controlsystems



Control limitations

Controlframework

Nature ofrisks

















Controlsystems



Control limitations

Controlframework

Nature ofrisks









Controlsystems



Control limitations

Controlframework

Nature ofrisks

CONTROL FRAMEWORK



Purposes

Objectives


Acceptable risks







Controlsystems



Control limitations

Controlframework

Nature ofrisks



Managementbypass





Controlsystems



Control limitations

Controlframework

Nature ofrisks




ERM benefits






Monitoring

STRATEGIC

OPERATIONS

REPORTING

COMPLIANCE





Controlsystems



Control limitations

Controlframework

Nature ofrisks


resources


ASSESSMENT




Topic List

Risk attributes




Objective setting



Objectivesetting


Internalenvironment


Risk attributes



Riskreturn


risk



Personal views

Risk attributes



Objectivesetting


Internalenvironment


Risk attributes


RISK

CONCERNS


Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes



Risk environment

















Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances



















Basis ofguidance



community



stakeholders










Objectives

Mission statements

Ethical codes

Governance codes



Impact of CSR






Basis ofguidance





SORP Set outcomes


Donors Government







Topic List

Role of board

Board membership




Reporting






Boardmembership









(003)ACP1PC14_CH03qxp 5282014 1240 AM





Board appraisal






Multi-tier boards





Boardmembership





Audit (Chapter 8)




Investment analysis

Risk management




Running board




Board appraisal

Board development








Boardmembership



Advantages of NEDs











Boardmembership


























Boardmembership






















Boardmembership









Benefits



Topic List

Control systems

Nature of risks

Control framework

Control limitations





Controlsystems



Control limitations

Controlframework

Nature ofrisks

















Controlsystems



Control limitations

Controlframework

Nature ofrisks









Controlsystems



Control limitations

Controlframework

Nature ofrisks

CONTROL FRAMEWORK



Purposes

Objectives


Acceptable risks







Controlsystems



Control limitations

Controlframework

Nature ofrisks



Managementbypass





Controlsystems



Control limitations

Controlframework

Nature ofrisks




ERM benefits






Monitoring

STRATEGIC

OPERATIONS

REPORTING

COMPLIANCE





Controlsystems



Control limitations

Controlframework

Nature ofrisks


resources


ASSESSMENT




Topic List

Risk attributes




Objective setting



Objectivesetting


Internalenvironment


Risk attributes



Riskreturn


risk



Personal views

Risk attributes



Objectivesetting


Internalenvironment


Risk attributes


RISK

CONCERNS


Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes



Risk environment

















Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances








Basis ofguidance



community



stakeholders










Objectives

Mission statements

Ethical codes

Governance codes



Impact of CSR






Basis ofguidance





SORP Set outcomes


Donors Government







Topic List

Role of board

Board membership




Reporting






Boardmembership










3 Corporate governance practice and reporting




Board appraisal






Multi-tier boards





Boardmembership





Audit (Chapter 8)




Investment analysis

Risk management




Running board




Board appraisal

Board development








Boardmembership



Advantages of NEDs











Boardmembership


























Boardmembership






















Boardmembership









Benefits



Topic List

Control systems

Nature of risks

Control framework

Control limitations





Controlsystems



Control limitations

Controlframework

Nature ofrisks

















Controlsystems



Control limitations

Controlframework

Nature ofrisks









Controlsystems



Control limitations

Controlframework

Nature ofrisks

CONTROL FRAMEWORK



Purposes

Objectives


Acceptable risks







Controlsystems



Control limitations

Controlframework

Nature ofrisks



Managementbypass





Controlsystems



Control limitations

Controlframework

Nature ofrisks




ERM benefits






Monitoring

STRATEGIC

OPERATIONS

REPORTING

COMPLIANCE





Controlsystems



Control limitations

Controlframework

Nature ofrisks


resources


ASSESSMENT




Topic List

Risk attributes




Objective setting



Objectivesetting


Internalenvironment


Risk attributes



Riskreturn


risk



Personal views

Risk attributes



Objectivesetting


Internalenvironment


Risk attributes


RISK

CONCERNS


Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes



Risk environment

















Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances









Objectives

Mission statements

Ethical codes

Governance codes



Impact of CSR






Basis ofguidance





SORP Set outcomes


Donors Government







Topic List

Role of board

Board membership




Reporting






Boardmembership














Board appraisal






Multi-tier boards





Boardmembership





Audit (Chapter 8)




Investment analysis

Risk management




Running board




Board appraisal

Board development



(003)ACP1PC14_CH03qxp 5282014 1240 AM





Boardmembership



Advantages of NEDs











Boardmembership


























Boardmembership






















Boardmembership









Benefits



Topic List

Control systems

Nature of risks

Control framework

Control limitations





Controlsystems



Control limitations

Controlframework

Nature ofrisks

















Controlsystems



Control limitations

Controlframework

Nature ofrisks









Controlsystems



Control limitations

Controlframework

Nature ofrisks

CONTROL FRAMEWORK



Purposes

Objectives


Acceptable risks







Controlsystems



Control limitations

Controlframework

Nature ofrisks



Managementbypass





Controlsystems



Control limitations

Controlframework

Nature ofrisks




ERM benefits






Monitoring

STRATEGIC

OPERATIONS

REPORTING

COMPLIANCE





Controlsystems



Control limitations

Controlframework

Nature ofrisks


resources


ASSESSMENT




Topic List

Risk attributes




Objective setting



Objectivesetting


Internalenvironment


Risk attributes



Riskreturn


risk



Personal views

Risk attributes



Objectivesetting


Internalenvironment


Risk attributes


RISK

CONCERNS


Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes



Risk environment

















Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances








Basis ofguidance





SORP Set outcomes


Donors Government







Topic List

Role of board

Board membership




Reporting






Boardmembership














Board appraisal






Multi-tier boards





Boardmembership





Audit (Chapter 8)




Investment analysis

Risk management




Running board




Board appraisal

Board development








Boardmembership



Advantages of NEDs











Boardmembership


























Boardmembership






















Boardmembership









Benefits



Topic List

Control systems

Nature of risks

Control framework

Control limitations





Controlsystems



Control limitations

Controlframework

Nature ofrisks

















Controlsystems



Control limitations

Controlframework

Nature ofrisks









Controlsystems



Control limitations

Controlframework

Nature ofrisks

CONTROL FRAMEWORK



Purposes

Objectives


Acceptable risks







Controlsystems



Control limitations

Controlframework

Nature ofrisks



Managementbypass





Controlsystems



Control limitations

Controlframework

Nature ofrisks




ERM benefits






Monitoring

STRATEGIC

OPERATIONS

REPORTING

COMPLIANCE





Controlsystems



Control limitations

Controlframework

Nature ofrisks


resources


ASSESSMENT




Topic List

Risk attributes




Objective setting



Objectivesetting


Internalenvironment


Risk attributes



Riskreturn


risk



Personal views

Risk attributes



Objectivesetting


Internalenvironment


Risk attributes


RISK

CONCERNS


Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes



Risk environment

















Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances





Topic List

Role of board

Board membership




Reporting






Boardmembership














Board appraisal






Multi-tier boards





Boardmembership





Audit (Chapter 8)




Investment analysis

Risk management




Running board




Board appraisal

Board development








Boardmembership



Advantages of NEDs











Boardmembership










(003)ACP1PC14_CH03qxp 5282014 1240 AM
















Boardmembership






















Boardmembership









Benefits



Topic List

Control systems

Nature of risks

Control framework

Control limitations





Controlsystems



Control limitations

Controlframework

Nature ofrisks

















Controlsystems



Control limitations

Controlframework

Nature ofrisks









Controlsystems



Control limitations

Controlframework

Nature ofrisks

CONTROL FRAMEWORK



Purposes

Objectives


Acceptable risks







Controlsystems



Control limitations

Controlframework

Nature ofrisks



Managementbypass





Controlsystems



Control limitations

Controlframework

Nature ofrisks




ERM benefits






Monitoring

STRATEGIC

OPERATIONS

REPORTING

COMPLIANCE





Controlsystems



Control limitations

Controlframework

Nature ofrisks


resources


ASSESSMENT




Topic List

Risk attributes




Objective setting



Objectivesetting


Internalenvironment


Risk attributes



Riskreturn


risk



Personal views

Risk attributes



Objectivesetting


Internalenvironment


Risk attributes


RISK

CONCERNS


Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes



Risk environment

















Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances







Boardmembership














Board appraisal






Multi-tier boards





Boardmembership





Audit (Chapter 8)




Investment analysis

Risk management




Running board




Board appraisal

Board development








Boardmembership



Advantages of NEDs











Boardmembership


























Boardmembership






















Boardmembership









Benefits



Topic List

Control systems

Nature of risks

Control framework

Control limitations





Controlsystems



Control limitations

Controlframework

Nature ofrisks

















Controlsystems



Control limitations

Controlframework

Nature ofrisks









Controlsystems



Control limitations

Controlframework

Nature ofrisks

CONTROL FRAMEWORK



Purposes

Objectives


Acceptable risks







Controlsystems



Control limitations

Controlframework

Nature ofrisks



Managementbypass





Controlsystems



Control limitations

Controlframework

Nature ofrisks




ERM benefits






Monitoring

STRATEGIC

OPERATIONS

REPORTING

COMPLIANCE





Controlsystems



Control limitations

Controlframework

Nature ofrisks


resources


ASSESSMENT




Topic List

Risk attributes




Objective setting



Objectivesetting


Internalenvironment


Risk attributes



Riskreturn


risk



Personal views

Risk attributes



Objectivesetting


Internalenvironment


Risk attributes


RISK

CONCERNS


Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes



Risk environment

















Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances








Board appraisal






Multi-tier boards





Boardmembership





Audit (Chapter 8)




Investment analysis

Risk management




Running board




Board appraisal

Board development








Boardmembership



Advantages of NEDs











Boardmembership


























Boardmembership










(003)ACP1PC14_CH03qxp 5282014 1240 AM












Boardmembership









Benefits



Topic List

Control systems

Nature of risks

Control framework

Control limitations





Controlsystems



Control limitations

Controlframework

Nature ofrisks

















Controlsystems



Control limitations

Controlframework

Nature ofrisks









Controlsystems



Control limitations

Controlframework

Nature ofrisks

CONTROL FRAMEWORK



Purposes

Objectives


Acceptable risks







Controlsystems



Control limitations

Controlframework

Nature ofrisks



Managementbypass





Controlsystems



Control limitations

Controlframework

Nature ofrisks




ERM benefits






Monitoring

STRATEGIC

OPERATIONS

REPORTING

COMPLIANCE





Controlsystems



Control limitations

Controlframework

Nature ofrisks


resources


ASSESSMENT




Topic List

Risk attributes




Objective setting



Objectivesetting


Internalenvironment


Risk attributes



Riskreturn


risk



Personal views

Risk attributes



Objectivesetting


Internalenvironment


Risk attributes


RISK

CONCERNS


Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes



Risk environment

















Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances







Boardmembership





Audit (Chapter 8)




Investment analysis

Risk management




Running board




Board appraisal

Board development








Boardmembership



Advantages of NEDs











Boardmembership


























Boardmembership






















Boardmembership









Benefits



Topic List

Control systems

Nature of risks

Control framework

Control limitations





Controlsystems



Control limitations

Controlframework

Nature ofrisks

















Controlsystems



Control limitations

Controlframework

Nature ofrisks









Controlsystems



Control limitations

Controlframework

Nature ofrisks

CONTROL FRAMEWORK



Purposes

Objectives


Acceptable risks







Controlsystems



Control limitations

Controlframework

Nature ofrisks



Managementbypass





Controlsystems



Control limitations

Controlframework

Nature ofrisks




ERM benefits






Monitoring

STRATEGIC

OPERATIONS

REPORTING

COMPLIANCE





Controlsystems



Control limitations

Controlframework

Nature ofrisks


resources


ASSESSMENT




Topic List

Risk attributes




Objective setting



Objectivesetting


Internalenvironment


Risk attributes



Riskreturn


risk



Personal views

Risk attributes



Objectivesetting


Internalenvironment


Risk attributes


RISK

CONCERNS


Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes



Risk environment

















Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances








Boardmembership



Advantages of NEDs











Boardmembership


























Boardmembership






















Boardmembership









Benefits

(003)ACP1PC14_CH03qxp 5282014 1240 AM


Topic List

Control systems

Nature of risks

Control framework

Control limitations





Controlsystems



Control limitations

Controlframework

Nature ofrisks

















Controlsystems



Control limitations

Controlframework

Nature ofrisks









Controlsystems



Control limitations

Controlframework

Nature ofrisks

CONTROL FRAMEWORK



Purposes

Objectives


Acceptable risks







Controlsystems



Control limitations

Controlframework

Nature ofrisks



Managementbypass





Controlsystems



Control limitations

Controlframework

Nature ofrisks




ERM benefits






Monitoring

STRATEGIC

OPERATIONS

REPORTING

COMPLIANCE





Controlsystems



Control limitations

Controlframework

Nature ofrisks


resources


ASSESSMENT




Topic List

Risk attributes




Objective setting



Objectivesetting


Internalenvironment


Risk attributes



Riskreturn


risk



Personal views

Risk attributes



Objectivesetting


Internalenvironment


Risk attributes


RISK

CONCERNS


Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes



Risk environment

















Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances







Boardmembership


























Boardmembership






















Boardmembership









Benefits



Topic List

Control systems

Nature of risks

Control framework

Control limitations




(004)ACP1PC14_CH04qxp 5282014 1242 AM

Controlsystems



Control limitations

Controlframework

Nature ofrisks

















Controlsystems



Control limitations

Controlframework

Nature ofrisks









Controlsystems



Control limitations

Controlframework

Nature ofrisks

CONTROL FRAMEWORK



Purposes

Objectives


Acceptable risks







Controlsystems



Control limitations

Controlframework

Nature ofrisks



Managementbypass





Controlsystems



Control limitations

Controlframework

Nature ofrisks




ERM benefits






Monitoring

STRATEGIC

OPERATIONS

REPORTING

COMPLIANCE





Controlsystems



Control limitations

Controlframework

Nature ofrisks


resources


ASSESSMENT




Topic List

Risk attributes




Objective setting



Objectivesetting


Internalenvironment


Risk attributes



Riskreturn


risk



Personal views

Risk attributes



Objectivesetting


Internalenvironment


Risk attributes


RISK

CONCERNS


Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes



Risk environment

















Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances



















Boardmembership






















Boardmembership









Benefits



Topic List

Control systems

Nature of risks

Control framework

Control limitations





Controlsystems



Control limitations

Controlframework

Nature ofrisks
















(004)ACP1PC14_CH04qxp 5282014 1242 AM

Controlsystems



Control limitations

Controlframework

Nature ofrisks









Controlsystems



Control limitations

Controlframework

Nature ofrisks

CONTROL FRAMEWORK



Purposes

Objectives


Acceptable risks







Controlsystems



Control limitations

Controlframework

Nature ofrisks



Managementbypass





Controlsystems



Control limitations

Controlframework

Nature ofrisks




ERM benefits






Monitoring

STRATEGIC

OPERATIONS

REPORTING

COMPLIANCE





Controlsystems



Control limitations

Controlframework

Nature ofrisks


resources


ASSESSMENT




Topic List

Risk attributes




Objective setting



Objectivesetting


Internalenvironment


Risk attributes



Riskreturn


risk



Personal views

Risk attributes



Objectivesetting


Internalenvironment


Risk attributes


RISK

CONCERNS


Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes



Risk environment

















Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances







Boardmembership






















Boardmembership









Benefits



Topic List

Control systems

Nature of risks

Control framework

Control limitations





Controlsystems



Control limitations

Controlframework

Nature ofrisks

















Controlsystems



Control limitations

Controlframework

Nature ofrisks









Controlsystems



Control limitations

Controlframework

Nature ofrisks

CONTROL FRAMEWORK



Purposes

Objectives


Acceptable risks







Controlsystems



Control limitations

Controlframework

Nature ofrisks



Managementbypass





Controlsystems



Control limitations

Controlframework

Nature ofrisks




ERM benefits






Monitoring

STRATEGIC

OPERATIONS

REPORTING

COMPLIANCE





Controlsystems



Control limitations

Controlframework

Nature ofrisks


resources


ASSESSMENT




Topic List

Risk attributes




Objective setting



Objectivesetting


Internalenvironment


Risk attributes



Riskreturn


risk



Personal views

Risk attributes



Objectivesetting


Internalenvironment


Risk attributes


RISK

CONCERNS


Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes



Risk environment

















Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances















Boardmembership









Benefits



Topic List

Control systems

Nature of risks

Control framework

Control limitations





Controlsystems



Control limitations

Controlframework

Nature ofrisks

















Controlsystems



Control limitations

Controlframework

Nature ofrisks









Controlsystems



Control limitations

Controlframework

Nature ofrisks

CONTROL FRAMEWORK



Purposes

Objectives


Acceptable risks






(004)ACP1PC14_CH04qxp 5282014 1242 AM

Controlsystems



Control limitations

Controlframework

Nature ofrisks



Managementbypass





Controlsystems



Control limitations

Controlframework

Nature ofrisks




ERM benefits






Monitoring

STRATEGIC

OPERATIONS

REPORTING

COMPLIANCE





Controlsystems



Control limitations

Controlframework

Nature ofrisks


resources


ASSESSMENT




Topic List

Risk attributes




Objective setting



Objectivesetting


Internalenvironment


Risk attributes



Riskreturn


risk



Personal views

Risk attributes



Objectivesetting


Internalenvironment


Risk attributes


RISK

CONCERNS


Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes



Risk environment

















Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances







Boardmembership









Benefits



Topic List

Control systems

Nature of risks

Control framework

Control limitations





Controlsystems



Control limitations

Controlframework

Nature ofrisks

















Controlsystems



Control limitations

Controlframework

Nature ofrisks









Controlsystems



Control limitations

Controlframework

Nature ofrisks

CONTROL FRAMEWORK



Purposes

Objectives


Acceptable risks







Controlsystems



Control limitations

Controlframework

Nature ofrisks



Managementbypass





Controlsystems



Control limitations

Controlframework

Nature ofrisks




ERM benefits






Monitoring

STRATEGIC

OPERATIONS

REPORTING

COMPLIANCE





Controlsystems



Control limitations

Controlframework

Nature ofrisks


resources


ASSESSMENT




Topic List

Risk attributes




Objective setting



Objectivesetting


Internalenvironment


Risk attributes



Riskreturn


risk



Personal views

Risk attributes



Objectivesetting


Internalenvironment


Risk attributes


RISK

CONCERNS


Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes



Risk environment

















Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances





Topic List

Control systems

Nature of risks

Control framework

Control limitations





Controlsystems



Control limitations

Controlframework

Nature ofrisks

















Controlsystems



Control limitations

Controlframework

Nature ofrisks









Controlsystems



Control limitations

Controlframework

Nature ofrisks

CONTROL FRAMEWORK



Purposes

Objectives


Acceptable risks







Controlsystems



Control limitations

Controlframework

Nature ofrisks



Managementbypass





Controlsystems



Control limitations

Controlframework

Nature ofrisks




ERM benefits

(004)ACP1PC14_CH04qxp 5282014 1242 AM





Monitoring

STRATEGIC

OPERATIONS

REPORTING

COMPLIANCE





Controlsystems



Control limitations

Controlframework

Nature ofrisks


resources


ASSESSMENT




Topic List

Risk attributes




Objective setting



Objectivesetting


Internalenvironment


Risk attributes



Riskreturn


risk



Personal views

Risk attributes



Objectivesetting


Internalenvironment


Risk attributes


RISK

CONCERNS


Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes



Risk environment

















Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances




Controlsystems



Control limitations

Controlframework

Nature ofrisks

















Controlsystems



Control limitations

Controlframework

Nature ofrisks









Controlsystems



Control limitations

Controlframework

Nature ofrisks

CONTROL FRAMEWORK



Purposes

Objectives


Acceptable risks







Controlsystems



Control limitations

Controlframework

Nature ofrisks



Managementbypass





Controlsystems



Control limitations

Controlframework

Nature ofrisks




ERM benefits






Monitoring

STRATEGIC

OPERATIONS

REPORTING

COMPLIANCE





Controlsystems



Control limitations

Controlframework

Nature ofrisks


resources


ASSESSMENT




Topic List

Risk attributes




Objective setting



Objectivesetting


Internalenvironment


Risk attributes



Riskreturn


risk



Personal views

Risk attributes



Objectivesetting


Internalenvironment


Risk attributes


RISK

CONCERNS


Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes



Risk environment

















Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances




Controlsystems



Control limitations

Controlframework

Nature ofrisks









Controlsystems



Control limitations

Controlframework

Nature ofrisks

CONTROL FRAMEWORK



Purposes

Objectives


Acceptable risks







Controlsystems



Control limitations

Controlframework

Nature ofrisks



Managementbypass





Controlsystems



Control limitations

Controlframework

Nature ofrisks




ERM benefits






Monitoring

STRATEGIC

OPERATIONS

REPORTING

COMPLIANCE





Controlsystems



Control limitations

Controlframework

Nature ofrisks


resources


ASSESSMENT


(004)ACP1PC14_CH04qxp 5282014 1242 AM


Topic List

Risk attributes




Objective setting



Objectivesetting


Internalenvironment


Risk attributes



Riskreturn


risk



Personal views

Risk attributes



Objectivesetting


Internalenvironment


Risk attributes


RISK

CONCERNS


Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes



Risk environment

















Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances




Controlsystems



Control limitations

Controlframework

Nature ofrisks

CONTROL FRAMEWORK



Purposes

Objectives


Acceptable risks







Controlsystems



Control limitations

Controlframework

Nature ofrisks



Managementbypass





Controlsystems



Control limitations

Controlframework

Nature ofrisks




ERM benefits






Monitoring

STRATEGIC

OPERATIONS

REPORTING

COMPLIANCE





Controlsystems



Control limitations

Controlframework

Nature ofrisks


resources


ASSESSMENT




Topic List

Risk attributes




Objective setting


(005)ACP1PC14_CH05qxp 5282014 1243 AM

Objectivesetting


Internalenvironment


Risk attributes



Riskreturn


risk



Personal views

Risk attributes



Objectivesetting


Internalenvironment


Risk attributes


RISK

CONCERNS


Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes



Risk environment

















Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances




Controlsystems



Control limitations

Controlframework

Nature ofrisks



Managementbypass





Controlsystems



Control limitations

Controlframework

Nature ofrisks




ERM benefits






Monitoring

STRATEGIC

OPERATIONS

REPORTING

COMPLIANCE





Controlsystems



Control limitations

Controlframework

Nature ofrisks


resources


ASSESSMENT




Topic List

Risk attributes




Objective setting



Objectivesetting


Internalenvironment


Risk attributes



Riskreturn


risk



Personal views

Risk attributes


(005)ACP1PC14_CH05qxp 5282014 1243 AM

Objectivesetting


Internalenvironment


Risk attributes


RISK

CONCERNS


Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes



Risk environment

















Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances




Controlsystems



Control limitations

Controlframework

Nature ofrisks




ERM benefits






Monitoring

STRATEGIC

OPERATIONS

REPORTING

COMPLIANCE





Controlsystems



Control limitations

Controlframework

Nature ofrisks


resources


ASSESSMENT




Topic List

Risk attributes




Objective setting



Objectivesetting


Internalenvironment


Risk attributes



Riskreturn


risk



Personal views

Risk attributes



Objectivesetting


Internalenvironment


Risk attributes


RISK

CONCERNS


Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes



Risk environment

















Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances








Monitoring

STRATEGIC

OPERATIONS

REPORTING

COMPLIANCE





Controlsystems



Control limitations

Controlframework

Nature ofrisks


resources


ASSESSMENT




Topic List

Risk attributes




Objective setting



Objectivesetting


Internalenvironment


Risk attributes



Riskreturn


risk



Personal views

Risk attributes



Objectivesetting


Internalenvironment


Risk attributes


RISK

CONCERNS


Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes



Risk environment







(005)ACP1PC14_CH05qxp 5282014 1243 AM










Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances




Controlsystems



Control limitations

Controlframework

Nature ofrisks


resources


ASSESSMENT




Topic List

Risk attributes




Objective setting



Objectivesetting


Internalenvironment


Risk attributes



Riskreturn


risk



Personal views

Risk attributes



Objectivesetting


Internalenvironment


Risk attributes


RISK

CONCERNS


Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes



Risk environment

















Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances





Topic List

Risk attributes




Objective setting



Objectivesetting


Internalenvironment


Risk attributes



Riskreturn


risk



Personal views

Risk attributes



Objectivesetting


Internalenvironment


Risk attributes


RISK

CONCERNS


Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes



Risk environment

















Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff







(005)ACP1PC14_CH05qxp 5282014 1243 AM




financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances




Objectivesetting


Internalenvironment


Risk attributes



Riskreturn


risk



Personal views

Risk attributes



Objectivesetting


Internalenvironment


Risk attributes


RISK

CONCERNS


Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes



Risk environment

















Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances




Objectivesetting


Internalenvironment


Risk attributes


RISK

CONCERNS


Debt providers

Wider community

Suppliers

Shareholders

Employees

Customers


Objectivesetting


Internalenvironment


Risk attributes



Risk environment

















Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model






(005)ACP1PC14_CH05qxp 5282014 1243 AM

6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances




Objectivesetting


Internalenvironment


Risk attributes



Risk environment

















Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification


(006)ACP1PC14_CH06qxp 5282014 1243 AM


Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances













Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples

(006)ACP1PC14_CH06qxp 5282014 1243 AM




6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances




Objectivesetting


Internalenvironment


Risk attributes

Board

Senior managers

Internal audit

External audit

Line managers

Staff











financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 Risks


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances







financial risks








Role of RM function


Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification







(006)ACP1PC14_CH06qxp 5282014 1243 AM

6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances




Objectivesetting


Internalenvironment


Risk attributes



COSO model







6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 Risks






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances




6 Risks

Topic List


Types of risks

Risk identification




Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking









(006)ACP1PC14_CH06qxp 5282014 1243 AM


Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances





Risk identification





Examples





6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities


(007)ACP1PC14_CH07qxp 5282014 1243 AM

Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances







6 RisksPage 49


Risk identification






Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment


(007)ACP1PC14_CH07qxp 5282014 1243 AM






HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances





Risk identification








6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances




6 RisksPage 51






Poor reputation




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios







(007)ACP1PC14_CH07qxp 5282014 1243 AM

Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances




Riskidentification


Physical inspection

Enquiries

Brainstorming

Checklists

Benchmarking











Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances





Topic List

Risk assessment

Risk responses

Control activities



Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies


(007)ACP1PC14_CH07qxp 5282014 1243 AM

Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances




Riskassessment

Riskresponses

Controlactivities





Risk assessment








HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances









HighLow

Low

Loss of suppliers


High

Likelihood





Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs

(007)ACP1PC14_CH07qxp 5282014 1243 AM


Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances




Riskassessment

Riskresponses

Controlactivities




Key ratios








Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee



(008)ACP1PC14_CH08qxp 5282014 1244 AM





Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances




Riskresponses


Controlactivities

Riskassessment

Consequences

Low High

Low Accept


Transfer


High Reduce


Avoid







Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should






(008)ACP1PC14_CH08qxp 5282014 1244 AM


Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances




Riskassessment

Riskresponses

Controlactivities


Futures Swaps


Insurance

Debtequity mix

International

Diversification

Natural hedging

Internal netting


Internal strategies



Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances




Riskresponses


Controlactivities

Riskassessment





Control accounts

Trial balances

Reconciliations

Physical counts





Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring





















(008)ACP1PC14_CH08qxp 5282014 1244 AM






Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances




Riskassessment

Riskresponses

Controlactivities








Benefits v costs



Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances





Topic List


Monitoring

Internal audit

Audit committee








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations

(008)ACP1PC14_CH08qxp 5282014 1244 AM


Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances








Directors should








Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances





Monitoring



























Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report


(008)ACP1PC14_CH08qxp 5282014 1244 AM

9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances



















Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories





(009)ACP1PC14_CH09qxp 5282014 1246 AM



























1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances









Objectivity In

Impartiality de

Unbiased views pe

Valid opinion nd


Relevant skills ce








auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories




















(009)ACP1PC14_CH09qxp 5282014 1246 AM












1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances









auditors







Investigations



Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories





















9 Personal ethics











1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances





Monitoring











understood





reporting

Regular review









Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria


(009)ACP1PC14_CH09qxp 5282014 1246 AM



deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances











Contents of report



9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria



9 Personal ethics


deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances




9 Personal ethics

Topic List

Ethical theories
































1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action




(009)ACP1PC14_CH09qxp 5282014 1246 AM


Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances






























1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest


(010)ACP1PC14_CH10qxp 5282014 1248 AM



Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances















1

2


Locus of control













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes


(010)ACP1PC14_CH10qxp 5282014 1248 AM




Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances













Criteria





deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances






deter it


















Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation





(010)ACP1PC14_CH10qxp 5282014 1248 AM


SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances














Right Sustainable




of action






Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances





Topic List

Company codes

Professional codes



Public interest





Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat



(010)ACP1PC14_CH10qxp 5282014 1248 AM




Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances






Professionalcodes



Other measures


Contents of codes






Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances







Professionalcodes



Advantages


Disadvantages


Professional codes




Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes








(010)ACP1PC14_CH10qxp 5282014 1248 AM


Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances






Professionalcodes

THREATS

Self-interest

Self-review

Advocacy

Familiarity

Intimidation







SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances





(011)ACP1PC14_CH11qxp 5282014 1249 AM


Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances





SELF- REVIEW THREAT



client

Other services

Corporatefinance


Tax services

Valuation services



Financialinterests

Recruitment

Lowballing

High of fees

or contingentfees

Overdue fees










Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles




(011)ACP1PC14_CH11qxp 5282014 1249 AM



Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances






Professionalcodes

Advocacy threat



Familiarity threat


Intimidation threat







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances







Professionalcodes


Financial interests










Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists








(011)ACP1PC14_CH11qxp 5282014 1249 AM



Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances






Professionalcodes










Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances





Topic List


Ethical stances







Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies


(011)ACP1PC14_CH11qxp 5282014 1249 AM









Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances





Environmentalaudits


Ethical stances



Limited view

Extended view

Equivalent view


Core principles







Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances






Environmentalaudits


Ethicalstances






Ethical stance





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators

(011)ACP1PC14_CH11qxp 5282014 1249 AM








Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances





Environmentalaudits


Ethical stances



Expedients


Social ecologists

Socialists

Radical feminists











Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances






Environmentalaudits


Ethicalstances






Wastedisposal







Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work

(011)ACP1PC14_CH11qxp 5282014 1249 AM

Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances





Environmentalaudits


Ethical stances




X____


Contingencies











Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances












Weak sustainability



Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances





Environmentalaudits


Ethical stances












privacy

GRI indicators









Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances











Environmentalaudits


Ethical stances






Types of audit



Audit work


Book Cover

Title

Copyright

Preface

Contents


Definition

Concepts

Agency

Stakeholders

Main issues



Basis of guidance


Sarbanes-Oxley




Role of board

Board membership




Reporting


Control systems

Nature of risks

Control framework

Control limitations




Risk attributes




Objective setting

Chapter 6 Risks


Types of risks

Risk identification


Risk assessment

Risk responses

Control activities



Monitoring

Internal audit

Audit committee



Ethical theories





Company codes

Professional codes



Public interest



Ethical stances




2015 bpp p1 passcards

Documents

Transcript of 2015 bpp p1 passcards