According to Coso Which of the Following Activities

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One of the financial statement auditors major concerns is to ascertain whether internal control is designed to provide reasonable. Instead of following a prescriptive checklist your organization can use the COSO Internal Control-Integrated Framework according to its unique needs to maintain a system of internal control.

7 Control Activities Coso Erm Framework Risk Management Erm Framework

Management then acts to alter the severity of risk.

. According to COSO which of the following components addresses the need to respond in an organized manner to significant changes resulting from international exposure acquisitions or executive transitions. Company management completes event identification and assesses the severity of risk. 1 the control environment 2 risk assessment 3 control activities 4 information and communication and 5 monitoring activities.

A Correct AnswerThe control environment includes among other things the element of human resource policies and practices. According to the COSO ERM framework which of the following is least likely to impede the independence of a board member. Ensure timely preparation of financial information.

1 S haring 2 P urse. Strengthening internal audits ability to deter and report improper behavior. Protection of proprietary information.

Ensure the accuracy and completeness of internal accounting records. A Segregation of duties. The culture capabilities and practices that organizations rely on to manage risk in creating preserving and realizing value.

All of the answers are correct. COSO also lists five core business activities essential to good risk management. The culture capabilities and practices integrated with strategy-setting that organizations rely on to manage risk in creating preserving and realizing value.

2 Risk involves uncertainty 3 Risk represents range of possible outcomes not single point 4 Risk may relate to risk mitigation and pursuing opportunities 5 Risk are inherent. According to the COSOs report five components of internal control include control environment risk assessment control activities information and communication and monitoring. Information and communication B.

Which of the following control activities should be taken to reduce the risk of incorrect processing in a newly installed computerized accounting system. Removing pressures to meet unrealistic targets particularly for shortterm. Ensure compliance with any applicable laws and regulations.

According to COSO which of the following components of enterprise risk management addresses an entitys integrity and ethical values. According to COSO ERM is best defined as. Demonstrating appropriate behavior by example.

COSOs 5 Core Business Activities for Risk Management. What are COSOs five categories of risk response SPARA. Which one of the following is least likely an advantage associated with a wholly owned foreign subsidiary.

This preview shows page 26 - 28 out of 48 pagespreview shows page 26 - 28 out of 48 pages. Ability to coordinate activities of the subsidiary with other activities. D Independently verify the transactions.

Which of the following items can best be described as an Event in the REA data model. Thus hiring orientation training evaluation counseling promotion compensation and remedial actions must be considered by management. C Adequately safeguard assets.

Show Result Related MCQs. According to COSO which of the following is not a component of internal control. An action or potential action that creates or alters goals or approaches for creating preserving or realizing value.

When considering internal control an auditor should be aware of reasonable assurance which recognizes that A. Seventeen principles are incorporated within the 5 components. According to CoSO which of the following components of the enterprise risk management addresses an entitys integrity and ethical values.

Ensure the high quality of both internal and external reporting. According to COSO which of the following components addresses the need to respond in an organized manner to significant changes resulting from international exposure acquisitions or executive transitions. Jane was a partner at the accounting firm that conducted the organizations financial statement audit five years ago but has no existing business or contractual relationships with the entity or its key stakeholders currently.

Minimizes capital investment required. Ability to maintain quality control. B Ensure proper authorization of transactions.

Control environment is the foundation on which everything rests and is the basis for assessing integrity and ethical values managements philosophy and. According to the 17 COSO control principles organizational objectives primarily relate to which fundamental component of internal control. Up to 10 cash back Per the COSO ICIF the main purpose of monitoring internal controls is to confirm that the internal control system can adequately address changes in.

Companys action demonstrates a focus on which of the following components of the COSO Internal Control Framework. According to COSO which of the following is the most effective method to transmit a message of ethical behavior throughout an organization. Ensure orderly and efficient conduct of business including following its internal policies.

Ratings 100 13 13 out of 13 people found this document helpful. Under the COSO framework internal control can be viewed as including five components.

Coso Framework Risk Management Management Risk Analysis