1) Which of the below is not a component of the COSO
ERM?A) monitoringB) control environmentC) risk assessmentD) compliance with federal, state, or local lawsAnswer:D2) The COSO Enterprise Risk Management Integrated Framework stresses thatA)
risk management activities are an inherent part of all business operations and should beconsidered during strategy setting.B) effective risk management is comprised of just three interrelated components; internalenvironment, risk assessment, and control activities.C) risk management is the sole responsibility of top
management.D) risk management policies, if enforced, guarantee achievement of corporate objectives.67
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| Multiple choice questions
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Try the following questions to test your knowledge of this chapter. Once you have answered the questions, click on 'Submit Answers for Grading' to get your results. This activity contains 22 questions.
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Internal controls are grouped into the following categories:
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Which of the following makes for an effective control environment with regards to commitment to competence?
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To determine a positive control environment, the auditor should consider which of the following control environment actions for integrity and ethical values?
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That companies must comply with many laws and regulations including company law, tax law and environmental protection regulations requires what category of internal control objectives?
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The most emphasis by auditors is placed on understanding which of the following types of controls?
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All of the following are sub-systems (contents) of an entity’s information system except:
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Which of the following is not one of the components of internal control according to COSO?
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US Securities Exchange Commission rules require that management must base its evaluation of the effectiveness of the company's internal control over financial reporting on a suitable, recognised control framework:
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The auditor's primary consideration is whether, and how, a specific control prevents, or detects and corrects, material misstatements:
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Implementation of a control means that the control exists and that:
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Obtaining audit evidence about the design and implementation of relevant controls may involve all of the following except:
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All the following describe internal control, according to COSO, except:
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The auditor’s primary consideration is whether, and how, a specific control prevents, or detects and corrects:
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All of the following are components of internal control except:
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There are a number of specific elements that usually contribute to a successful control environment and which may be used as indicators of the quality of the control environment of a particular organisation. Which of the following is not one of these elements?
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Which of the following are not general IT controls?
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Which of the following are not application controls?
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Which of the following is not true about the risk assessment component of the COSO internal control framework?
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Which of the following is an example of adequate documents?
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Segregation of duties means what fundamental functions which must be separated and adequately supervised?
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Soft controls are the intangible factors in an organisation that influence the behaviour of managers and employees. Which of the following is not a factor that influences the way people examine their control activities?
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The preliminary assessment of control risk includes all the following procedures except:
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Answer choices in this exercise appear in a different order each time the page is loaded.
What are the 5 components of the COSO framework?
Here are the five components of the COSO framework:.
Control environment. The control environment seeks to make sure that all business processes are based on the use of industry-standard practices. ... .
Risk assessment and management. ... .
Control activities. ... .
Information and communications. ... .
Monitoring..
Which of the following is not one of the components of the COSO framework?
Answer and Explanation: (b) Financial Statement preparation is not one of the key components that make up the committee of sponsoring organizations (COSO) internal control integrated framework.
Which of the following is not a component of internal control system?
Which of the following is not a component of internal control? Monitoring of controls.
Which of the following is not a component in the COSO 2013 internal control framework quizlet?
The responsibility of monitoring the effectiveness of internal controls belongs to the internal audit group. Which of the following is not one of the five essential components in the COSO 2013 framework? -detective control.