COSO Flashcards
what is the objective that this goes with and what principle which of the 17 principles
evaluated hearings to standards of conduct
Organization demonstrates a commitment to integrity and ethical values
Control environment
establishes reporting lines
management establishes with board oversight, structures, reporting lines, and appropriate authorities and responsibilities in the pursuit of objectives
what are the entity levels in Coso
and to think, subsidiary, division, operating unit and functional levels
which component considers the potential for fraud
risk assessment
Who has her which component considers entity specific factors exclusively
Control activities the organization selects and develops control activities that contribute to the mitigation of risk to the achievement of objectives and acceptable levels
which component is concerned with technology and the controls over technology
Control activities it even says the establishes relevant technology acquisition acquisition development and maintenance process control activities noticethat’s not monitoring
which section or component is concerned with developing how fees that establish what is expected and procedures that put policies into action
Control activities
which component is concerned with objectives. Operations objective external reporting objectives, external financial and nonfinancial the reporting of directive, internal reporting objectivesand compliance objectives
risk assessment
Order of Budgets
Sales Production Materials Cash DISBURSEMENTS Budgeted financial statements
Elasticity of Demand Coefficient is Greater Than 1
Relatively Elastic
What ever is being divided, the numerator is larger than the denominator
% Change in Demand (Quantity)/% Change in Price
Dr. Phil is Inelastic
Dr. Phil Is Inelastic
Reminder for Elasticity. Whatever the Demand is Over the Price. % Change in that is
Over 1 Relatively Elastic
Less 1. Relatively Inelastic
0 Perfectly Elastic
What is demand if Elasticity is Less than 1
Relatively Inelastic
What If Elasticity is 0
Perfectly Elastic
PV Negative then the discount rate compared to the IRR is?
Discount rate is greater than the IRR
Remember the IRR is what produced those cash flows
So something’s earning 12% a year on it’s face
But if you discount it back using 13% You see that it’s not meeting your return rate
What figure is being subtracted from the total of the discounted cash flows in a NPV analysis.
The original investment in the project.
