COSO

Question 1

Three objectives of Internal control

Answer 1

1. Reliability of Financial reporting
2. Effectiveness and efficiency of operations
3. Compliance with applicable laws and regulations

Question 2

The five internal control components

Answer 2

Control environment
Risk assessment
Information and Communication
Monitoring
Existing Control Activities

Question 3

Control Environment

Answer 3

1. Commitment to ethics and integrity
2. Board independence and oversight
3. Organizational structure
4. Commitment to competence
5. Accountability

Question 4

Risk Assessment

Answer 4

1. Specify Objectives
2. Identify and analyze risks
3. Consider potential for fraud
4. Identify and asses changes

Question 5

Information and Communication

Answer 5

1. Obtain and use information
2. Internally Communicate information
3. Communicate with external parties

Question 6

Monitoring Activities

Answer 6

1. Ongoing and or separate evaluations
2. Communication of deficiencies

Question 7

Existing Control Activities

Answer 7

1. Select and develop control activities
2. Select and develop technology controls
3. Deployment of policies and procedures