e
g
a
l
o
b
i
z
e
g
a
l
o
b
i
z
Candidates should be familiar with legal requirements that mandate internal controls, such as: Sarbanes-Oxley Act (SOX):
Designed to deter errors or fraud from happening in the first place (e.g., password protections, physical locks, segregation of duties).
Maya starts her morning reviewing the company’s dashboard. She notes: cma part 1 volume 2 sections d e
Candidates must be able to differentiate between the major costing systems. is used for customized products, while process costing is for homogeneous goods produced in mass quantities. A significant focus is placed on Activity-Based Costing (ABC) , which assigns overhead to specific activities based on their use of resources, providing a more accurate product cost compared to traditional methods.
Understanding regulations like the Sarbanes-Oxley Act (SOX) in the United States and global equivalents. B. Internal Control Systems and Security Measures Candidates should be familiar with legal requirements that
Preventative controls are designed to stop errors or fraud before they occur (e.g., passwords, segregation of duties). Detective controls are designed to find errors or fraud after they have occurred (e.g., variance analysis, internal audits, physical inventory counts). 4. Information Systems and Technology Controls
These include General Controls (IT management, security) and Application Controls (input, processing, output controls to ensure data integrity). is used for customized products, while process costing
Understanding the role of internal auditors in monitoring the effectiveness of controls. 3. Study Strategy for Sections D & E
Verifying the accuracy of records against physical assets or independent sources (e.g., bank reconciliations). 4. Systems Controls and Security Measures
