Are there any compensating controls that could or would work in place of segregation of duties?

Are there any compensating controls that could or would work in place of segregation of duties?

Examples of Compensating Controls A single employee has the duties of accepting cash payments, recording the deposit, and reconciling the monthly financial reports. To prevent errors and/or fraud, additional oversight is required.

What is compensating control in accounting?

A compensating control, also called an alternative control, is a mechanism that is put in place to satisfy the requirement for a security measure that is deemed too difficult or impractical to implement at the present time.

How can segregation of duties be improved?

5 Tips for Improving Segregation of Duties in Your Organization

1. Access: writing checks or preparing wire transfers or direct debit transactions;
2. Authorization: approving the transaction prior to payment that was created by an individual who has access; and.

When a compensating control exists the absence of a key control?

A compensating control is one elsewhere in the system that offsets the absence of a key control. When a compensating control exists, there is no longer a significant deficiency or material weakness. 4. Decide whether there is a significant deficiency or material weakness.

What is the difference between a compensating and mitigating control?

In the simplest analysis, the difference is this: mitigating controls are meant to reduce the chances of a threat happening while compensating controls are put into place when specific requirements for compliance can’t be met with existing controls. The former is permanent; the latter is temporary.

Which of the following would be a compensating control to mitigate risks resulting from an inadequate segregation of duties?

Compensating/mitigating controls may exist to mitigate the risks resulting from a lack of appropriate segregation of duties. These controls include audit trails, reconciliation, supervisory reviews and transaction logs.

Is segregation of duties a preventive control?

Preventive. Examples of preventive controls include: Segregation of Duties. Duties are segregated among different people to reduce the risk of error or inappropriate action.

What is compensatory control theory?

Compensatory Control Theory (CCT) suggests that religious belief systems provide an external source of control that can substitute a perceived lack of personal control. In a seminal paper, it was experimentally demonstrated that a threat to personal control increases endorsement of the existence of a controlling God.

What alternative controls could you think of to compensate for non compliance with the segregation of duties?

Why do auditors assess control risk?

Control risk should be assessed at the maximum level for relevant assertions (1) for which controls necessary to sufficiently address the assessed risk of material misstatement in those assertions are missing or ineffective or (2) when the auditor has not obtained sufficient appropriate evidence to support a control …

When considering internal control the auditors must be aware of the concept of reasonable assurance which recognizes that the?

Terms in this set (12) When considering internal control, an auditor must be aware of the concept of reasonable assurance, which recognizes that the: Cost of internal control should not exceed the benefits expected to be derived therefrom.