A4 COSO Internal Framework

Question 1

Internal Controls

Answer 1

Internal controls is a process policy or procedure designed or affected by an entity’s BOD or mgmt designed for the achievement of objectives. These include ORC; effectiveness & efficiency of Operations, reliability of financial Reporting, & Compliance with applicable laws & regulations.

Question 2

CRIME

Answer 2

COSO is widely accepted as an authoritative guidance on the components of a robust internal control system. This includes Control Environment, Risk Assessment, Information & Communication, Monitoring Activities, & Control Activities.

Question 3

Control Environment

Answer 3

Sets the tone at the top & establishes org structure and commitment to competence.

Question 4

Risk Assessment

Answer 4

Involves the identification, analysis, & management of risk

Question 5

Information & Communication

Answer 5

The exchange of info within an org. Internally and externally

Question 6

Monitoring Activities

Answer 6

Process to access the quality control on internal controls. Allows outgoing and separate evaluations on the five components.

Question 7

Control Activities

Answer 7

Create Policies & procedures to ensure mgmt activities, risk mitigation, etc

Question 8

COSO Framework

Answer 8

Provides a structured approach to assessing systems of internal control and guide the entity toward effective decision making.