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P1 mnemonics
PURPOSES OF CORPORATE CODE OF ETHICS
CAGEEE
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4. RISK REPORTING
ABOVE INFORMATION CONSOLIDATED INTO COMPREHENSIVE REPORT-SUBMITTED TO-RISK
COMMITTEE OR BOARD.
INTERNAL RISK AUDIT
EXTERNAL RISK AUDIT
RISK AUDIT DONE BY SOMEONE FROM INSIDE RISK AUDIT DONE BY SOMEONE FROM OUTSIDE
INTERNAL AUDITOR
CONSULTING FIRM,ACCOUNTING/AUDIT FIRM
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COFFE
C-INVESTORS WILL HAVE GREATER CONFIDENCE
O-OBJECTIVE,IMPARTIAL,INDEPENDENT
F-AVOIDS FAMILIARITY THREAT
F-FRESH PERSPECTIVE
E-EXPERIENCE AND EXPERTISE
S-STRATEGIC RISK
L-LONG TERM
O-FIRM MAY DRIFT FROM ORIGINAL FOOTING AND EXPERIENCE STRATEGIC DRIFT
W-WRONG BUSINESS MODEL
D-DECISIONS,ACTIONS,EVENTS THAT RESULT IN EROSION OF FIRMS MARKET SHARE,SALES AND
ROFIT,BRAND IDENTITY AND COMPETITIVENESS
M-MARKET RISK
L-LIQUIDITY RISK
C-CURRENCY RISK
C-CREDIT RISK
FINANCIAL POSITION
CORPORATE GOVERNANCE ARRANGEMENTS
ROLE OF COMMITTEES
REPORT ON RISK EXPOSURE
INTERNAL CONTROLS AND RISK MANAGEMENT
COMPLIANCE SECTION IN ANNUAL REPORT
ETHICAL THREAT-
ENVIRONMENTAL AUDIT
3 STEPS
1. DECIDE ENVIRONMENTAL METRICSAND ENVIRONMENTAL OBJECTIVES
-ENERGY USAGE,GREENHOUSE GAS EMISSION ETC
2. MEASURE FIRMS CURRENT PERFORMANCE AND COMPARE WITH ENVIRONMENTAL
OBJECTIVES
3. REPORT THIS INFORMATION TO SHOW COMPLIANCE/VARIANCE
VARIANCE-EXPLAIN IN THE EXAM WHY THE VARIANCE AND EXPLAIN THE STEPS TAKEN TO
ADDRESS THIS ISSUE FOR SCENARIO QUESTIONS
AUDIT COMMITTEE SUITABLE TO ADVISE ON PURCAHSE OF NON AUDIT SERVICES:WHY/HOW
DIOR
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TTRANSPERANCY
I-INTEGRITY
C-DATA COLLECTED ,PROCESSED,UPDATED,MAINTAINED CORRECTLY
T-MITIGATE FINANCIAL REPORTING IN TIMELY MANNER
A-SAFEGUARD ASSETS
C-COMPLIANCE
INTERNAL CONTROLS
OAP SPASM
ORGANISATIONAL CONTROLS
CONTROL OVER THE ORGANISATION STRUCTURE INCLUDING MANAGERS HAVING
SPECIFIC
RESPONSIBILITIES AND DELEGATIONS TASKS.
AUTHORISATION
CONTROLS TO ENSURE THAT TRANSACTIONS DO NOT PROCEED UNTIL AN
APPROPRIATE INDIVIDUAL HAS GIVEN APPROVAL.
PHYSICAL
PROTECTION OF ASSETS AGAINST THEFT, UNAUTHORISED ACCESS OR USE.
SUPERVISION
OVERSIGHT OF WORK OF OTHER INDIVIDUALS TO ENSURE TASKS ARE CARRIED OUT
CORRECTLY.
PERSONNEL
CONTROLS IN PLACE TO ENSURE THE SUITABLE PEOPLE ARE EMPLOYED.
ARITHMETIC ACCOUNTING
CHECKING ACCOUNTING TRANSACTIONS FOR ACCURACY, INCLUDES USE OF
ACCOUNTS AND RECONCILIATIONS (E.G. BANK RECONCILIATION).
SEGREGATION/ROTATION
DIFFERENT PEOPLE FOR EACH TRANSACTION TO AUTHORISE, RECORD, MAINTAIN
PHYSICAL CUSTODY OF ANY ASSETS (I.E. PETTY CASH), PAY FOR IT.
MANAGEMENT CONTROLS
CONTROL ACTIONS TAKEN BY MANAGEMENT DEPENDING ON THE CONTENTS OF
REPORTS RECEIVED. MANAGERS SHOULD BE INVOLVED IN THE DAY TO DAY
SUPERVISION OF STAFF.
CORPORATE GOVERNANCE ELEMENTS
HAIRDRIFT
HONESTY/PROBITY
ACCOUNTABILITY
INDEPENDENCE
RESPONSIBILITY
DECISION TAKING/JUDGEMENT
REPUTATION
INTEGRITY
FAIRNESS
TRANSPARENCY/OPENNES
ROLE AND FUNCTION OF AN AUDIT COMMITTEE
CLARISSA
C-CREATE A CLIMATE OF DISCIPLINE AND CONTROL
L- LEND AN AIR OF CREDIBILITY AND OBJECTIVITY
A-ASSIST CFO BY PROVIDING A FORUM
R-REVIEW FINANCIAL STATEMENTS TO IMPROVE THE QUALITY
I-INDEPENDENT JUDGEMENT
S-STRENGTHEN POSITION OF THE INTERNAL AUDITOR
S-STRENGTHEN POSITION OF THE EXTERNAL AUDITOR
A-ASSIST IN THE RESOLUTION OF DISPUTES
TYPES OF STAKEHOLDERS PINKLAVR
PRIMARY/SECONDARY
INTERNAL/EXTERNAL
NARROW/WIDE
KNOWN/UNKNOWN
LEGITIMATE/ILLEGITIMATE
ACTIVE/PASSIVE
VOLUNTARY/INVOLUNTARY
RECOGNISED/UNRECOGNISED
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PRAD
P- PROACTIVE
R- REACTIVE
A- ACCOMODATIVE
D- DEFENSIVE
PRESSSD
PRISTINE CAPITALIST
RADICAL FEMINIST
EXPEDIENTS
SOCIAL CONTRACT
SOCIAL ECOLOGIST
SOCIALIST
DEEP ECOLOGIST
QUALITY/ CHARACTERISTIC OF GOOD INFORMATION
ACCURATE
ACCURATE
COMPLETE
COST BENEFICIAL
USER TARGETED
RELEVANT
AUTHORITATIVE
TIMELY
EASY TO USE
CORPORATE CODE OF ETHICS
SPICES S
SOCIAL
POSITION
IMPLEMENTATION
CUSTOMER RELATIONS
EMPLOYEES
SUPPLIERS
SHAREHOLDERS
PERLS FOR TUCKER
PROFITABLE
EQUITABLE
RIGHT
LEGAL
SUSTAINABLE
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RISK FRAMEWORK
ALARM
APPETITE
LIST (RISK REGISTER)
ASSESS (TARA)
RESPONSE
MONITOR
GENERAL GUIDE TO SOME RISKS:
FROP LIFE(RHYMES WITH FLOP LIFE)
FINANCIAL RISK
REPEUTATION RISK
OPERATIONAL RISK
PRODUCT RISK
LEGAL & POLITICAL RISK
INFORMATION TECHNOLOGY RISK
ENTREPRENEURIAL RISK OR ECONOMIC RISK
FRAUD RISK
FOR AAA MODEL:
FINABCD
F FACTS?
I ISSUES?
N NORMS?
A ALTERNATIVES?
B BEST SOLUTION?
C CONSEQUENCES?
D DECISION?
THEN YOU CAN WRITE THE WHOLE QUESTION IN YOUR OWN WORDS (LIKE F FACTS => WHAT ARE
THE FACTS OF THE CASE?
PRINCIPLES OF ERM (ENTERPRISE RISK MANAGEMENT TOPIC: RISK
MANAGEMENT)
BREACH
BUSINESS STRATEGY CONTEXT
RANGE OF RISKS/ CONSIDER/ BROAD
EVERYONE IS RESPONSIBLE
AWARENESS/ RISK
CULTURE/ RISK-AWARE
HOLISTIC APPROACH
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STRATEGY CONCERNS
INTERNAL CONTROL FAILURE
DOMINATED BY SMALL GROUP EXEC
SOCIAL RESPONSIBILITY POOR
COMPLIANCE TO GOV CODE ISSUES
OPERATIONAL PERFORMANCE POOR
REMUNERATION OF EXEC ISSUE
NEDS FAILING TO HOLD EXEC TO ACCOUNT.
GUIDELINE PRINCIPALS FOR INTEGRATED REPORTING
FIRMCC
FOCUS AND FUTURE
INFORMATION
RELATIONS WITH STAKEHOLDERS
MATERIALITY
CONCISENESS
COMPLETENESS
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