Question

Controls are generally classified as entity level controls, process level controls, and transaction level controls. Please describe each type of control and provide one example for each type.

Answer 1

Entity level controls: These are internal controls designed, implemented and managed by organisation to ensure that management directives relating to organisation as a whole are achieved.

Examples include: Internal audit, variance analysis

Process level controls: These types of controls are designed to ensure that all business processes are carried out smoothly and efficiently that help in achieving business objective.

Examples include: Segregation of duties, approvals and authorizations

Transaction level controls: These controls are in place with regard to specific transactions.

Examples include: Accounts receivable /cash collection.

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