any action taken by management, the board, and other parties to manage risk and increase the likelihood that established objectives and goals will be achieved. Management plans, organizes, and directs the performance of sufficient actions to provide reasonable assurance that objectives and goals will be achieved.
the policies, procedures, and activities that are part of a control framework, designed to ensure that risks are contained within the risk tolerances established by the risk management process
The Control Process
1) Establishing standards for the operation to be controlled
2) Measuring performance against the standards
3) Examining and analyzing deviations
4) Taking corrective action
5) Reappraising the standards based on experience
Controls provide assurance to management that desired actions will be accomplished when objectives are established in writing and
standards are adopted, results are compared with the standards, and corrective actions are undertaken
Which of the following statements best describes the relationship between planning and controlling?
Controlling cannot operate effectively without the tools provided by planning
Internal auditors regularly evaluate controls. Which of the following best describes the concept of control as recognized by internal auditors?
Management takes action to enhance the likelihood that established goals and objectives will be achieved