BEC MCQ homework B 1.1 Flashcards
Monitoring activity
Periodically comparing and updating the mission vision and values is monitoring
Control activity
Control activities are those typically those procedures that implement rather than monitor controls
Residual risk
represents the risk that remains after the management has taken actions to mitigate events
Positive events
Positive events represents opportunities
Strategic objectives
Information technology objectives, Reporting objectives, Compliance objectives,
Event Inventory
The technique characterized by the Development of listing of potential event common to a industry
Facilitated workshop
A event bringing together knowledgably individuals
Interviews
One to oe discussion with knowledgable staff
Questionnaires
Surveys sent to staff
COmpliance objective
Ethics related
Reporting objective example
Establishing company wide uniform chart of accounts
Operations objective
Conducting Focus
Strategic
If it is broader in prospects it is releated
Process flow analysis
Invloves analyzing flow charts as a basis for determining risk exposures
Monitoring activity
Periodically comparing and updating the mission vision and values is monitoring
Coso- Internal environment
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
The control activities of the component of ERM framework
Includes key elements that releate to policies and procedures that ensure appropriate responses to identified risks not to the assignment of authority and responsiblity
Information and communication component
That includes communication and caputure of information not to the assignment of responsiblity
Monitoring component
of ERM includes key element that releate to the ongoing management activities or separate evaluations of ERM
Audit committee member
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
COSO and Sarbenes OXley
1992 and 2002
Residual risk
Residual risk is the risk after management responds to the risk
Inherent risk
It is the risk which exists if the management take any actions
ERM
Is associated with the identification of risk and balancing of those risks with profitability and growth objectives.
The number of layers between the chief financial officer and financial reporting should not exceed
three
four stages of change continum
Beginning with control baseline Change identification change management control validation update
Control baseline
understand the Internal control system design and whether controls have been implemented to accomplish internal control objectives.
Change identification
Considers the risk assessment component of IC and identifies changes in process or risk
change management
Change manament contemplates the establishment of a new control baseline in response to changes that either or are implemented in response to revise needs.
Control revalidation and update
Contemplates Control effectiveness, ongoing procedures routinely revalidate and create a continuous baseline while separate evolution provide periodic evaluation
Fiduciary responsibility
directors
agents
employees
executives
officers
Representatives
attorney
Principles that protects directors from personal liability is
Business judgement rule
Eight components of ERM framework
Internal environment, Event identification,Activities control, Setting objectives, control,Assesment of risk, Information and communication, Risk response and Monitoring
