CPA Exam - BEC - Week#1
What are the 5 components of the COSO Internal Control integrated framework? - ANS-1.
Control Environment
2. Control Activities
3. Risk Assessment
4. Monitoring
5. Information & Communication
What are the 5 principles of the Control Environment component of the Internal Control
framework? - ANS-•Board independence and oversight
•Organizational structure
•Accountability
•Commitment to competence
•Commitment to ethics and integrity
What are the 4 principles of the Risk Assessment component of the Internal Control framework?
- ANS-•Identify and analyze risks
•Consider potential for fraud
•Specify objectives
•Identify and assess changes
What are the 3 principles of the Control Activities component of the Internal Control framework?
- ANS-•Select and develop control activities
•Select and develop technology controls
•Deploy through policies and procedures
What are the 3 principles of the Information & Communication component of the Internal Control
framework? - ANS-•Obtain and use information
, •Internal Communication
•External Communication
What are the 2 principles of the Monitoring component of the Internal Control framework? -
ANS-•Ongoing and/or separate evaluations
•Communication of deficiencies
What are the 5 components of Enterprise Risk Management? - ANS-1. Governance and Culture
2. Strategy and Objective-Setting
3. Performance
4. Review and Revision
5. Information, Communication, and Reporting
What are the 5 principles of the Governance and Culture component of ERM? - ANS-•Defines
desired culture
•Establishes operating structure
•Exercises board oversight
•Demonstrates commitment to core values
•Attracts, develops, and retains capable individuals
What are the 4 principles of the Strategy and Objective-Setting component of ERM? -
ANS-•Analyzes business context
•Evaluates alternative strategies
•Defines risk appetite
•Formulates business objectives
What are the 5 principles of the Performance component of ERM? - ANS-•Identifies risks
•Assesses severity of risk
What are the 5 components of the COSO Internal Control integrated framework? - ANS-1.
Control Environment
2. Control Activities
3. Risk Assessment
4. Monitoring
5. Information & Communication
What are the 5 principles of the Control Environment component of the Internal Control
framework? - ANS-•Board independence and oversight
•Organizational structure
•Accountability
•Commitment to competence
•Commitment to ethics and integrity
What are the 4 principles of the Risk Assessment component of the Internal Control framework?
- ANS-•Identify and analyze risks
•Consider potential for fraud
•Specify objectives
•Identify and assess changes
What are the 3 principles of the Control Activities component of the Internal Control framework?
- ANS-•Select and develop control activities
•Select and develop technology controls
•Deploy through policies and procedures
What are the 3 principles of the Information & Communication component of the Internal Control
framework? - ANS-•Obtain and use information
, •Internal Communication
•External Communication
What are the 2 principles of the Monitoring component of the Internal Control framework? -
ANS-•Ongoing and/or separate evaluations
•Communication of deficiencies
What are the 5 components of Enterprise Risk Management? - ANS-1. Governance and Culture
2. Strategy and Objective-Setting
3. Performance
4. Review and Revision
5. Information, Communication, and Reporting
What are the 5 principles of the Governance and Culture component of ERM? - ANS-•Defines
desired culture
•Establishes operating structure
•Exercises board oversight
•Demonstrates commitment to core values
•Attracts, develops, and retains capable individuals
What are the 4 principles of the Strategy and Objective-Setting component of ERM? -
ANS-•Analyzes business context
•Evaluates alternative strategies
•Defines risk appetite
•Formulates business objectives
What are the 5 principles of the Performance component of ERM? - ANS-•Identifies risks
•Assesses severity of risk
