University of San Carlos - Downtown Campus

P. Del Rosario St., Cebu City

AC 1204 - GOVERNANCE, BUSINESS ETHICS,

RISK MANAGEMENT AND INTERNAL CONTROL

RISK MANAGEMENT PROJECT-

CONTROL ACTIVITIES

SECOND SEMESTER
3:00-4:30 PM (TTH)
GROUP NUMBER: 2

Bahande, Trisha Mae G.

Baron, Anne Nicole Kathryn
Danuco, Justine Chloe N.
Estucado, Lorraine Marie
Uy, Nathaniel Jilson B.

PROFESSOR: MRS. MARILYN U. CORTES

May 21, 2019

Control Activities

According to the Committee of Sponsoring Organizations of the Treadway Commission’s (COSO)

updated Internal Control – Integrated Framework (2013 Framework), control activities are the actions
established by the policies and procedures to help ensure that management directives to mitigate risks to
the achievement of objectives are carried out. Control activities are performed at all levels of the entity, at
various stages within business processes, and over the technology environment. They may be preventive or
detective in nature and may encompass a range of manual and automated activities such as authorizations
and approvals, verifications, reconciliations, and business performance reviews. Segregation of duties is
typically built into the selection and development of control activities. Where segregation of duties is not
practical, management selects and develops alternative control activities.
Integrity Risk: Inconsistent or Lower Quality of Professors

In implementing a Filtering Program which will seek to increase BSA graduates, more students
will be accommodated, thus, more professors must be hired to compensate with the increasing number of
students. The competence of professors play a very big factor towards the academic achievement of the
students, especially in the course like BS-Accountancy which has a licensure exam. Accounting programs
succeed when they can attract the best faculty and students and ensure sufficient funding for operations and
growth (Fombrunand Shanley,1990; Fogarty et al., 2016). This competition occurs, to a large extent,
through the promotion of an institutional reputation for quality of education, wherein the quality of teaching
force is an important factor

The University of San Carlos currently has a competent set of faculty members which has produced
several topnotchers throughout the years, however, in employing new professors, the outcome may be
different. To counter this risk, various control activities are being employed.

Control Activities (Manual)

a. Approvals and Authorizations

Authorization is the power granted to an employee to perform a task. It is a delegation of

duties. In hiring new teachers, they will go through a series of screening processes which will assess
their competence in teaching, so that they will be authorized to teach BSA courses. Various factors
will be taken into consideration - credentials, their knowledge, which will be measured through
their mastery; skills, such as interpersonal relationship, communication, leadership and planning,
and attitude, measured through their commitment, ethics, proactivity, empathy and flexibility.
Approval is the confirmation or sanction of employee decisions, events or transactions,
based on an independent review. The approval of the employer will only be granted when the
applicants meet the standard.

b. Segregation of Duties

According to AICPA, Segregation of Duties (SOD) is a basic building block of sustainable

risk management and internal controls for a business. It is based on the shared responsibilities of a
key process that disperses the critical functions of that process to more than one person or
department. Without this separation in key processes, fraud and error risks are far less manageable.
 Through the evaluation process, the applicants will be sorted according to their strengths.
In this way, there will be a proper designation of duties to lessen the probability of failure and
increase the efficiency and effectiveness of the newly-hired professors. To make sure that the
performance of the professors are consistent, evaluations will be conducted from time-to-time to
make sure that the control activity was successfully established.