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ARM 400 Chapter 7 questions and answers already solved 2024
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ARM 400 Chapter 7 questions and answers already solved 2024
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ARM 400 Chapter 7 - Part 2 InternalControl Frameworks and Standards
A system or process that a company uses to achieve its operational goals,
internal and external financial reporting goals, or legal and regulatory
compliance goals, is called: - correct answer ✔Internal control.
A systematic investigation of records, documents, systems, and operations, is
called: - correct answer ✔Audit.
A standard defining the attributes of companies and individuals performing
internal auditing, is called: - correct answer ✔Attribute standard.
A standard defining the nature of internal auditing and providing quality criteria
against which the performance of these services can be measured, is called: -
correct answer ✔Performance standard.
Goals, objectives, plans, and budgets all help a company: - correct answer
✔Measure its effectiveness.
But only if: - correct answer ✔They're monitored effectively.
Internal controls can provide the tools necessary to determine: - correct
answer ✔Whether a company's systems are functioning as intended.
But, before these controls can be established, the company must select: -
correct answer ✔An appropriate framework.
, Familiarity with the various frameworks available will provide risk
professionals with: - correct answer ✔The knowledge they need to guide
their customers through the process of selecting an appropriate framework.
Internal controls define: - correct answer ✔The plans, methods, and
procedures that guide a company toward meeting its goals and objectives,
and confirm whether those procedures are functioning as intended.
On the other hand, a framework is: - correct answer ✔The established set of
standards that bring the controls together.
A framework guarantees: - correct answer ✔Uniformity across a company.
A framework ensures that: - correct answer ✔All its departments and units
are of like mind when working toward the company's objectives.
Frameworks help management at all levels: - correct answer ✔Identify
successes, as well as address potential failures before they become critical
errors.
Some well-known frameworks are: - correct answer ✔The coh so Internal
Control—Integrated Framework, eye so Series 9000 and 27000, and IIA
standards.
The Committee of Sponsoring Organizations of the Treadway Commission's
coh so's Internal Control Integrated Framework: - correct answer ✔Common
standards designed to increase effectiveness and efficiency of operations and
reliability of financial reporting while ensuring compliance with applicable laws
and regulations. Coh so describes the components of controls as the control
environment, risk assessment, control activities, information and
communication, and monitoring.
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