Key Control Definition 1812



  • How can I define key control in specific process?
    Agueda Barros



  • After performing scoping and risk assessment procedures to determine which locations and accounts need to be documented/tested for the 404 assessment, I recommend that process narratives be developed by personnel most familiar with that process. Within those narratives key controls should be identified by the process owners and reviewed by IA for suggestions/recommendations. These key controls should address the financial statement assertions relevant to the significant accounts. Key controls are, very generally stated, activities/process that if not operating appropriately could potentially cause a material misstatement in the financial statements.
    There’s a plethora of information available from the PA firms, SEC, and PCAOB that you should read through to get a better understanding of what’s required (which may appear to be a moving target).
    Hope this helps and good luck to you.



  • Ok.
    Thanks for your help…
    But about ‘These key controls should address the financial statement assertions relevant to the significant accounts’
    Where can I find more details?
    Agueda



  • Hi,
    You can search in this forum on the term ‘key control’ and you will find extensive dialogue about key controls.
    The link below provides a discussion of key controls and specifics.
    http://www.sarbanes-oxley-forum.com/modules.php?name=Forums-and-file=viewtopic-and-t=1421-and-highlight=key control
    Hope this helps,
    Milan



  • But about ‘These key controls should address the financial statement assertions relevant to the significant accounts’
    Where can I find more details?
    Auditing Standard No. 2, to start with anway.



  • Thanks a lot.



  • But about ‘These key controls should address the financial statement assertions relevant to the significant accounts’
    Where can I find more details?
    Auditing Standard No. 2, to start with anway.


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