COSO Internal Control Framework - 17 principles

Question 1

What are the 5 principles of Control Environment?

Answer 1

1. Demonstrates commitment to integrity and ethical values
2. Exercised oversight responsibility
3. Establishes structure, authority and responsibility
4. Demonstrates commitment to competence
5. Enforces Accountability

Question 2

What are the 4 principles of Risk Assessment?

Answer 2

1. Specifies suitable objectives
2. Identifies and analyse risks
3. Assesses fraud risk
4. Identifies and analyses significant change

Question 3

What are the 3 principles of Control Activities?

Answer 3

1. Selects & develops control activities
2. Selects & develops general controls over technology (GITC)
3. Deploys through P&P

Question 4

What are the 3 principles of Information & Communication?

Answer 4

1. Uses relevant information
2. Communicates internally
3. Communicates externally

Question 5

What are the 2 principles of Control Monitoring?

Answer 5

1. Conducts ongoing and/or separate evaluations
2. Evaluates and communicates deficiencies