Case Study: Control Activities Mitigate Risks That Threaten

Case Study 1control Activities Mitigate Risks That Threaten Objectiv

Case study (1) Control activities mitigate risks that threaten objectives and thus provide reasonable assurance that objectives will be achieved. Risks cover both: threats of bad things happening and threats of missing opportunities. Some control activities are visible and therefore can be photographed. Instructions: 1. Photograph two different controls you observe around campus and/or the surrounding community. Use your imagination and ingenuity. Each team must work independently to produce a unique set of pictures. (1 Mark) a. One of the controls photographed must be control designed to mitigate risks of bad things happening. b. The other control photographed must be control designed to mitigate risks of missing opportunities (that is, controls designed to help something good happen). 2. For each control activity photographed: a. Clearly indicate whether the control is designed to mitigate the threat of bad things happening or the threat of missing opportunities. b. Then briefly and separately describe: i. The objective that the control activity is designed to help achieve. (2 Marks) ii. The risk that the control activity is designed to mitigate. (2 Marks) (Note: The risk you describe must be something other than merely the inverse of the objective.) iii. How the control activity is meant to operate (that is, how the control works). (2 Marks) iv. As an internal auditor, how would you test the control activity to determine whether it is operating effectively. (2 Marks) Formal criteria (1 Mark): The research paper must agree with all of the following criteria: · Use Cover page that contains (The research subject, Your Instructor Name, Your Sections, the date of submission, your names). · Use A4 page size. · Set all margins at 2 cm. · Use font Arial 12 and 1.5 line spacing. (Use Bold and 14 for titles). · Paragraphs should be separated by a line space. · Footer: Insert page number. · Header: write your student ID and section.

Paper For Above instruction

In today's dynamic environments, controlling risks is essential for organizations to achieve their objectives effectively. Control activities, whether aimed at preventing negative outcomes or encouraging positive opportunities, are vital components of an internal control framework. This paper identifies and analyzes two observed control activities—one intended to mitigate risks of adverse events and another designed to promote beneficial opportunities—demonstrating their purpose, operation, and methods for effectiveness testing.

Control to Mitigate Risks of Bad Things Happening

The first control observed on campus is the installation of security cameras at building entry points. This control is primarily designed to prevent unauthorized access, thus mitigating the risk of theft, vandalism, or other security breaches. The main objective of this control is to safeguard campus property and ensure the safety of students and staff. By monitoring access points visually, the campus administration aims to deter potential offenders and respond promptly to security incidents.

The risk this control mitigates is the threat of theft or vandalism, which could result in property loss and harm to individuals. The operational mechanism involves the placement of cameras with real-time recording and remote monitoring capabilities, enabling security personnel to detect unauthorized entry as it occurs. Additionally, clear signage indicates surveillance, which acts as a deterrent.

As an internal auditor, testing the effectiveness of this control would involve reviewing camera operation logs, verifying camera coverage of all critical access points, inspecting the signage for visibility, and assessing incident reports related to unauthorized access. Physical checks to ensure cameras are functional and recording properly would also be necessary, alongside interviews with security staff to confirm active monitoring.

Control to Mitigate Risks of Missing Opportunities

The second control identified is a campus-wide digital communication platform that sends timely alerts for upcoming events, deadlines, and opportunities for student engagement. This control aims to foster active participation and informed decision-making among students, staff, and faculty by ensuring relevant information reaches stakeholders promptly.

The risk mitigated by this control is the possibility of students and staff missing important opportunities such as scholarship deadlines, event registrations, or academic advisories. To achieve this, the platform automatically pushes notifications via email and mobile alerts, which increases visibility and accessibility of crucial information.

The operation of this control involves integrating an alert management system with the campus’s existing communication channels. It collects event data from various departments and schedules automatic notifications based on predefined criteria. The system ensures timely dissemination, reducing the risk of human oversight or forgetfulness.

To evaluate the effectiveness of this communication control, an internal auditor would examine the scheduling and accuracy of notifications sent during a review period. Sampling recent alerts to verify their relevance, checking recipient receipt confirmations, and obtaining feedback from stakeholders about the timeliness and usefulness of the information would form part of the testing. Additionally, reviewing logs for system errors or missed alerts ensures operational reliability.

Conclusion

Control activities are crucial for managing risks related to achieving organizational objectives. The security camera system exemplifies a control designed to prevent adverse events, while automated communication alerts highlight a control aimed at promoting opportunities. As internal auditors, rigorous testing of these controls ensures their operational effectiveness, ultimately contributing to a secure and opportunity-rich environment.

References

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