BEC MCQ homework B 1.1

Question 1

Monitoring activity

Answer 1

Periodically comparing and updating the mission vision and values is monitoring

Question 2

Control activity

Answer 2

Control activities are those typically those procedures that implement rather than monitor controls

Question 3

Residual risk

Answer 3

represents the risk that remains after the management has taken actions to mitigate events

Question 4

Positive events

Answer 4

Positive events represents opportunities

Question 5

Strategic objectives

Answer 5

Information technology objectives, Reporting objectives, Compliance objectives,

Question 6

Event Inventory

Answer 6

The technique characterized by the Development of listing of potential event common to a industry

Question 7

Facilitated workshop

Answer 7

A event bringing together knowledgably individuals

Question 8

Interviews

Answer 8

One to oe discussion with knowledgable staff

Question 9

Questionnaires

Answer 9

Surveys sent to staff

Question 10

COmpliance objective

Answer 10

Ethics related

Question 11

Reporting objective example

Answer 11

Establishing company wide uniform chart of accounts

Question 12

Operations objective

Answer 12

Conducting Focus

Question 13

Strategic

Answer 13

If it is broader in prospects it is releated

Question 14

Process flow analysis

Answer 14

Invloves analyzing flow charts as a basis for determining risk exposures

Question 15

Monitoring activity

Answer 15

Periodically comparing and updating the mission vision and values is monitoring

Question 16

Coso- Internal environment

Answer 16

ERM framework- Foundation elements such as organizational structure assignment of authority and responsibility Integrity and ethical values, risk management philosophy Commitment to competence and human resource standards and similar issues that influence the tone of the organization

Question 17

The control activities of the component of ERM framework

Answer 17

Includes key elements that releate to policies and procedures that ensure appropriate responses to identified risks not to the assignment of authority and responsiblity

Question 18

Information and communication component

Answer 18

That includes communication and caputure of information not to the assignment of responsiblity

Question 19

Monitoring component

Answer 19

of ERM includes key element that releate to the ongoing management activities or separate evaluations of ERM

Question 20

Audit committee member

Answer 20

Audit committee member may not accept compensation from the issuer for consulting or advisory services. Audit committee member may not be an affiliated person of the issuer

Question 21

COSO and Sarbenes OXley

Answer 21

1992 and 2002

Question 22

Residual risk

Answer 22

Residual risk is the risk after management responds to the risk

Question 23

Inherent risk

Answer 23

It is the risk which exists if the management take any actions

Question 24

ERM

Answer 24

Is associated with the identification of risk and balancing of those risks with profitability and growth objectives.

Question 25

The number of layers between the chief financial officer and financial reporting should not exceed

Answer 25

three

Question 26

four stages of change continum

Answer 26

Beginning with control baseline Change identification change management control validation update

Question 27

Control baseline

Answer 27

understand the Internal control system design and whether controls have been implemented to accomplish internal control objectives.

Question 28

Change identification

Answer 28

Considers the risk assessment component of IC and identifies changes in process or risk

Question 29

change management

Answer 29

Change manament contemplates the establishment of a new control baseline in response to changes that either or are implemented in response to revise needs.

Question 30

Control revalidation and update

Answer 30

Contemplates Control effectiveness, ongoing procedures routinely revalidate and create a continuous baseline while separate evolution provide periodic evaluation

Question 31

Fiduciary responsibility

Answer 31

directors

Question 32

agents

Answer 32

employees

Question 33

executives

Answer 33

officers

Question 34

Representatives

Answer 34

attorney

Question 35

Principles that protects directors from personal liability is

Answer 35

Business judgement rule

Question 36

Eight components of ERM framework

Answer 36

Internal environment, Event identification,Activities control, Setting objectives, control,Assesment of risk, Information and communication, Risk response and Monitoring