chapter 3

Question 1

provides direction to those executing the day-to-day activities of managing the risks inherent in an organizations business model

Answer 1

governance structure

Question 2

process conducted by the BOD to authorize, direct, and oversee management toward the achievement of the organizations objectives

Answer 2

governance

Question 3

two broad areas of governance

Answer 3

-strategic directions
-governance oversight

Question 4

stakeholders can be directly divided into the following groups:

Answer 4

directly involved
interested
influencing

Question 5

internal control activities conducted by individuals and management

Answer 5

first line defense

Question 6

represents other assurance activities such as financial controller, risk management, compliance, health & safety

Answer 6

second line defense

Question 7

assurance internal audit functions

Answer 7

third line defense