Corporate Governance

Question 1

Whats the different type of risks

Answer 1

Inherit Risk - Before management decision
Residual Risk - after management’s response
Event Risk - Risk of Loss after event

Question 2

COSO risk responses includes

Answer 2

Avoidance
Reduction
Sharing

Question 3

Institute of Internal Auditors’ Standards, the internal audit function should have Knowledge of

Answer 3

Key Information Technology Risks
Information Technology Audit Techniques
Evaluate Fraud Risks

Question 4

The components of COSO enterprise risk management are

Answer 4

(1) internal environment,
(2) objective setting,
(3) event identification,
(4) risk assessment,
(5) risk response,
(6) control activities,
(7) information and communication, and
(8) monitoring

Question 5

definition of internal control developed by the Committee of Sponsoring Organizations (COSO) includes

Answer 5

the objectives of reporting, compliance with laws and regulations and Effectiveness and efficiency of operations

Question 6

Control environment Principals include

Answer 6

sets the standards, processes and structure

A commitment to integrity and ethical values

Individuals are held accountable for their control responsibilities.

A commitment to attract, develop, and retain competent individuals

Question 7

Risk Assessment principals include

Answer 7

The organization identifies and assesses changes that could significantly affect internal control

The organization specifies objectives with sufficient clarity

The organization considers the potential for fraud

Question 8

Control Activities

Answer 8

encompass policies and procedures that ensure that management’s directives are carried out

Question 9

A financial expert should have knowledge of

Answer 9

GAAP
Audit Committee
Internal control procedures for financial reporting

Question 10

CEO succession

Answer 10

is overseen by the Nominating/corporate governance committee