Major components of an internal control system


Question 1: How would you weigh risk against return? Is there a point when return makes risk invalid? Explain your answer well.

Question 2: When is insurance beneficial? Is insurance ever not beneficial? Explain your answer very well.

Question 3: Where would you begin an evaluation of an internal control system? Please explain why?

Question 4: What are some major components of an internal control system? Are these components always necessary? Explain your answer.

Question 5: Explain the details of a fraud scheme that internal controls, due to inherent limitations, cannot impede

Question 6: Describe some considerations for observing physical inventory. Explain a fraud scheme that could be used for inventory.

Question 7: Explain how a company's growth can outpace current controls and provide an example

Question 8: Explain some major risks inherent in the payroll cycle. How can these risks be mitigated?

Question 9: Explain how controls and security are related for information assets

Question 10: Explain the links between business continuity, system availability, and disaster recovery?

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