
What are the four major categories of pervasive controls? Why would the PCAOB refer to these controls as ‘entity-level’?

To determine: The four major categories of pervasive controls and provide reason for referring these control as ‘entity-level’ by PCAOB.
Explanation of Solution
Four major categories of pervasive controls and provide reason for referring these control as ‘entity-level’ by PCAOB:
The four major categories of pervasive control are,
- Organizational design.
- Corporate policies,
- Monitoring controls and
- IT general controls.
PCAOB referred the above controls as ‘entity level’ since it controls the overall security of the firm. The Organizational design controls the organizational structure and environment, the rules and regulations are governed under corporate policies. The monitoring controls guides the surveillance actions and IT general controls guides other IT related security actions.
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