COSO

Question 0

17 COSO principles, fraud primarily relates to?

Answer 0

Risk Assessment

Question 1

COSO defines internal control as?

Answer 1

It’s a process effected by entity’s Board of Directors, management, and other - designed to provide reasonable assurance.

• Effectiveness and efficiency of operations
• Reliability of financial reporting
• Compliance with applicable laws and regulations

Question 2

Integrity and ethical values, Board of directors, Management, Competence, Accountability

Answer 2

Control Environment

Question 3

Risk objectives, Assessment, Fraud, Change management

Answer 3

Risk Assessment

Question 4

Risk reduction, Technology controls, Policies

Answer 4

Control Activities

Question 5

Quality, Internal, External

Answer 5

Information and Communication

Question 6

Ongoing and Periodic, Address deficiencies

Answer 6

Monitoring

Question 7

Two primary attributes of effective evaluators are:

Answer 7

Competence and objectivity

Question 8

The nature or quality of controls are:

Answer 8

1. Control objectives
2. Compensating controls
3. Deficiency or Internal control deficiency
4. Key controls
5. Key performance indicators
6. Key risk indicators

Question 9

Terms related to quality of evidence in control monitoring and assessment are:

Answer 9

1 Direct information

2. Indirect Info
3. Persuasiveness of info
4. Relevant info
5. Reliable info
6. Sufficient info
7. Suitable info
8. Timely info
9. Verifiable

Question 10

Methods for reviewing control processes are:

Answer 10

1 Reviewing

2. Benchmarking assessments
3. Questionnaire
4. Focus group and interview

Question 11

A method for reviewing control process that incorporating reviews of flow charts, and risk and control documentation is known as?

Answer 11

Reviewing process

Question 12

A method for reviewing control processes that comparing organizational controls and processes with best practices in comparable functions is known as?

Answer 12

Benchmarking assessments

Question 13

A methods for reviewing control processes that assess the extent of which controls are operating as stipulated is known as?

Answer 13

Questionnaire

Question 14

A method for reviewing control process to identify concerns and surprises related to changes in the system of internal control is known as?

Answer 14

Focus groups and interviews

Question 15

COSO model of control monitoring are:

Answer 15

1. Establish a foundation for monitoring
2. Design and execute monitoring procedures
3. Assess and report control evaluation results

Question 16

COSO Model: The control monitoring process

• Tone from the top
• Organizational structure
• Baseline understanding of internal control effectiveness

Answer 16

Establish a foundation

Question 17

COSO Model: The control monitoring process

• Prioritize risks
• Identify controls
• Identify persuasive information about controls
• Implement monitoring procedures

Answer 17

Design and Execute

Question 18

COSO Model: The control monitoring process

• Prioritize findings
• Report results to the appropriate level
• Follow up on corrective action

Answer 18

Assess and Report

Question 19

Process called Monitoring-for-change continuum involved:

Answer 19

1. Establish a control baseline
2. Identify changes
3. Manage changes
4. Revalidate control baseline

Question 20

Name the 3 activities that comprise assessing and reporting in control monitoring.

Answer 20

Prioritize findings, report results as appropriate, follow up to implement corrective actions

Question 21

List the 4 activities that comprise the design and execution of control monitoring

Answer 21

1. Prioritize risks
2. Identify controls
3. Identify persuasive information about controls
4. Implement monitoring procedures

Question 22

4 main themes of Attribute Standard are:

Answer 22

1. Purpose, Authority, and Responsibility
2. Independence and Objectivity
3. Proficiency & Due Care
4. Quality Assurance & Improvement Profram