Governing A Company's Business Activities

Question 1

Internal controls

Answer 1

Policies are put in place to help a company achieve operations, financial reporting, and regulatory compliance objectives.

Question 2

Operations

Answer 2

Controls help a company produce a product or service efficiently.

Question 3

Financial reporting

Answer 3

Properly structured internal controls help a business generate reliable financial statements.

Question 4

Regulatory compliance

Answer 4

An internal control system allows a company to comply with industry laws and regulations.

Question 5

COSO

Answer 5

Committee of Sponsoring Organizations

Question 6

What does COSO do?

Answer 6

COSO provides internal control guidance to corporations and promotes ideas on risk management and fraud detection.

Question 7

COSO separates internal controls into five components:

Answer 7

Control environment, Risk assessment, Control activities, Information and communication, and Monitoring

Question 8

Segregation of duties

Answer 8

The process of separating critical duties among multiple employees to reduce the risk of theft.