COSO

Question 1

Control Environment

Answer 1

Includes the processes, structures, and standards that provide the foundation for an entity to establish a system of internal control. 5 Principles:

1) Ethics and Integrity
2) Board Independence
3) Organizational Structure
4) Commitment to competence
5) Accountability

Question 2

Risk Assessment

Answer 2

Entity’s identification and analysis of risks to the achievement of its objectives. 4 Principles:

1) Specify Objectives
2) Id and Analyze Risks
3) Consider Potential for Fraud
4) Id and Assess Changes

Question 3

Information and Communication

Answer 3

Support the identification, capture, and exchange of information in a timely and useful manner. 3 Principles:

1) Obtain and use info
2) Internally Communicate Info
3) Communicate with External Parties

Question 4

Monitoring

Answer 4

Process of assessing the quality of internal control performance over time by assessing the design and operation of controls on a timely basis and taking the necessary corrective actions. 2 Principles:

1) Evals
2) Communicate Deficiencies

Question 5

Existing Control Activities

Answer 5

To detect and prevent. 3 Principles:

1) Develop control activities
2) Develop technology controls
3) Deploy policies and procedures