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UNIT 5 SUMMARY - Coggle Diagram
UNIT 5 SUMMARY
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Controls
Weaknesses and Risks
An organisation will be faced with risks when the organisation has a weak internal control environment (weaknesses)
Example
The production manager is responsible for calculating all of the employee's wages using an excel spreadsheet
Weakness: There is no control over the payroll
function as there is a lack of segregation of duties
Risk: This might lead to the misappropriation
of funds
Internal Controls
Refer to the control activities that the organisation should
implement to ensure they achieve the desired objectives
E.g. the organisation will implement internal controls that
should be adhered to with regards to the authorisation of a
payroll collection
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