Sarbanes-Oxley (SOX) Identifying and Documenting Controls

Instructor: Lynn Fountain

Glossary/Index

ICs 4 Abbreviation for internal controls

FR 4 Abbreviation for financial reporting
Directive 6 Actions taken to cause or encourage a desirable event to occur.
Controls They are broad in nature and apply to all situations
Preventative 6 Designed to keep errors or irregularities from occurring in the
Controls first place
Detective 7 Designed to detect errors or irregularities that may have
Controls occurred
Corrective 8 Designed to correct errors or irregularities that have been
Controls detected
Recovery 8 Designed to recover information in the event of loss
Controls
Automated 9 The application of control theory for regulation of processes
Controls without direct human intervention.
Manual 9 Controls performed by human interaction
Controls
Initiation 14 The action of beginning something
Authorization 19 The fact or act of giving permission or authority
Processing 22 The step by step sequence of executing a specific action
PCAOB 31 Public Companies Accounting and Oversight Board
ICFR 31 Internal Controls Over Financial Reporting
Flowchart 40 A visual representation of something
P.O. 46, 47 Purchase Order
SOD 46 Segregation of duties
AP 47 Accounts payable
Ops 47 Abbreviation for operations
Narrative 49 A story or a guide to define what your process does and how
they do it
FR 51 Financial reporting
MM 51, 54 Material misstatement
FS 53 Financial statement
Policies 56 Clear, simple statements of how organizations intend to conduct
its business
Template 60 A form that has specific factors outlined to include
Checklist 61 A listing of items required, things to be done, or points to be
considered

Questionnaires 63 A set of printed or written questions with a choice of answers,
devised for the purposes of a survey or statistical study.