B1 Flashcards
What is one thing that would not be included in the code of conduct?
expectations to ethical behavior or the law in the name of competition
What was the purpose the internal control integrated framework was created?
To help businesses asses internal control
What is the first ongoing monitoring step in evaluating the effectiveness of an internal control?
Establishing a control baseline
How is the “obtain and use information” applied
applied when org obtains or generates and uses information to support functioning of the control
What is included in the “assess-and-report” phase of monitoring internal controls?
Prioritize findings
Which components of COSO addresses an entity’s Financial reporting objectives?
risk assessment
What type of value is distributing dividends represent?
Value realization
What is “the diversification of products” do to risks?
Reduction
Who sets the risk appetite of the organization?
Management NOT internal auditor
What is the difference between inherent risk and residual risk?
Managements actions to reduce the inherent risk
Define organizational sustainability
the ability of an entity to withstand the impact of large-scale events
What organization established the Sarbanes- Oxley Act of 2002?
PCAOB
According to SOX, what must an issue disclose whether or not it has adopted a code for who?
the issuers senior financial officers but not other employees
Which type of risk does the technique of market value at risk analysis associate with?
Price risk
What is a put option?
Gives its owner the right to sell a specific security at fixed conditions of price and time.
