Corp Governance

Question 1

What are the elements of COSO’s internal controls framework?

Answer 1

1.) Control environment: tone at the top.
Integrity and ethical, board of directors, management established structures, competence and accountability.

2.)risk assessment:
Objectives, assessment, fraud, change mgmt

3.) control activities:
Risk reduction, tech controls, policies

4.) info and communication:
Quality, internal communication, external communication

5.)monitoring:
ongoing and periodic, address deficiency

Question 2

What are the limitations of IC?

Answer 2

• Inappropriate objectives can be set.
• control override
• human error
• collusion

Question 3

What type of assurance do internal controls provide?

Answer 3

Reasonable assurance

Question 4

What are preventative and detective controls?

Answer 4

Prevention controls are before controls

Detective controls are after controls. Meaning the data is available

Question 5

What are the components of COSOs risk mgmt framework?

Answer 5

1. Governance and culture: identification and allocation of roles, including risk culture
2. Information communication and reporting: obtaining and sharing information
3. Strategy and objective setting: development of strategy and tolerance (risk appetite)
4. Erm and performance:

Question 6

What is the key performance indicator and the key risk indicator?

Answer 6

The performance indicator is a historical analysis of risk and the risk indicator is the analysis of the like hood.