COSO & COSO ERM Flashcards
Define “control activities” (as outlined by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) framework).
One of five components of internal control, according to the Committee of Sponsoring Organizations of the Treadway Commission (COSO) model. This component relates to the policies and procedures that ensure that actions are taken to address the risks related to the achievement of management’s objectives.
Define “compliance objectives” (as outlined by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Enterprise Risk Management - Integrated Framework).
Goals designed to ensure that the organization meets all legal and regulatory requirements. Compliance objectives are one of four organizational objectives, according to the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Enterprise Risk Management - Integrated Framework.
Define “risk assessment” (as outlined by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) framework).
One of five components of internal control, according to the Committee of Sponsoring Organizations of the Treadway Commission (COSO) model. Risk assessment is a process of identifying, analyzing and managing the risks in achieving the organization’s objectives.
Define “strategic objectives” (as outlined by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Enterprise Risk Management - Integrated Framework).
High-level goals that support the overall mission of the organization. Strategic objectives are one of four organizational objectives, according to the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Enterprise Risk Management - Integrated Framework.
Define “control environment”
One of five components of internal control, according to the Committee of Sponsoring Organizations of the Treadway Commission (COSO) model. This control encompasses management’s philosophy towards controls, organizational structure, system of authority and responsibility, personnel practices, and policies and procedures. This component is the core or foundation of any system of internal control.
Define “monitoring” (as outlined by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) framework).
One of five components of internal control, according to the Committee of Sponsoring Organizations of the Treadway Commission (COSO) model. This component ensure the ongoing reliability of information, by monitoring and testing the system and its data.
Define “objective setting” (as identified in the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Enterprise Risk Management model).
Control that ensures that the company establishes objectives at each of the four specified levels (strategic, operational, reporting, and compliance). Objective setting is one of the three components of control identified in the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Enterprise Risk Management model.
Define “risk response” (as identified in the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Enterprise Risk Management model).
Management’s response to risk that is dependent on management’s appetite for risk - observed risks may be avoided, reduced, shared, or accepted. Risk response is one of the three components of control identified in the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Enterprise Risk Management model.
Define “reporting objectives” (as outlined by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Enterprise Risk Management -Integrated Framework).
Information system goals related to the accuracy, completeness, timeliness, and reliability of internal and external reporting. Reporting objectives are one of four organizational objectives, according to the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Enterprise Risk Management - Integrated Framework.
Define “operations objectives” (as outlined by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Enterprise Risk Management - Integrated Framework).
Goals that deal with the day-to-day operating activities of the organization (i.e. sales activities, warehousing, manufacturing, etc.). Operation objectives are one of four organizational objectives, according to the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Enterprise Risk Management - Integrated Framework
Define “information and communications” (as outlined by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) framework).
One of five components of internal control, according to the Committee of Sponsoring Organizations of the Treadway Commission (COSO) model. This component involves the information and communication systems that enable an organization’s personnel to identify, process, and exchange the information needed to manage and control operations.
Define “event identification” (as identified in the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Enterprise Risk Management model).
Events that might affect - either positively or negatively - the organization’s ability to meet its objectives. Event identification is one of the three components of control identified in the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Enterprise Risk Management model.
Who are the five members of COSO?
1- AICPA 2- Institute of Internal Auditors 3- Institute of Management Accountants 4- American Accounting Association 5- Financial Executives Institute
