List and describe the control activities for mitigating financial, operational, and compliance controls risks

What will be an ideal response?

Answer:
- Segregation of duties to divide authorization, recording, and asset custody among different individuals. For example, the person responsible for custody of an inventory of digital cameras should not also have access to the accounting records. If the inventory clerk stole 10 digital cameras to give to family and friends, the accounting records should show a discrepancy between the actual physical count of inventory that would be 10 cameras short versus the accounting records.
- Independent reconciliations of assets and accounting records, such as bank statement reconciliations and inventory reconciliations.
- Physical controls to provide for physical security of assets, such as security cameras and restricted access to corporate buildings.
- Information technology (IT) controls to ensure appropriate information processing, authorization, and data integrity. An example of an IT control would be data validation, techniques to ensure that only valid data is entered, such as five spaces for ZIP code.