ACC 383K.2 Management Audit and Control - Governance & Risk Management

These flashcards cover key concepts from the lecture on Governance and Risk Management in relation to internal auditing and organizational responsibilities.

What is the overall purpose of Internal Auditing?

To serve as an independent assurance and advisory activity designed to add value and improve the company's operations.

What are the components of a standard according to the lecture notes?

I. Requirements. II. Considerations for Implementation. III. Evidence of conformance.

Who is responsible for establishing the strategic objectives of an organization?

The board and senior management jointly.

What does internal auditing help an organization accomplish?

It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of governance, risk management, and control processes.

What is the Three Lines Model?

A framework that helps organizations strengthen governance, risk management, and assurance by emphasizing collaboration, value creation, and stakeholder alignment.

What roles does the management play in the Three Lines Model?

Management leads and directs actions to achieve organizational objectives, manages risk as part of daily operations, and maintains communication with the governing body.

Define assurance mapping.

The process of creating a matrix that shows an organization’s key risks and identifies which internal and external groups provide assurance that those risks are being managed.

What is the responsibility of the Governing Body in governance?

To engage and communicate transparently with stakeholders, promote ethical culture, and ensure compliance with laws and regulations.

How has governance evolved according to the lecture?

Governance has evolved with changes in regulations, leading to a more structured approach to organizational oversight and risk management.

What does the IIA's Three Lines Model emphasize?

It emphasizes collaboration and communication across the governing body, management, and internal audit to enhance governance and risk management.