M2 Enterprise Risk Management Framework Flashcards
MCQ-06480
According to the Committee of Sponsoring Organizations (COSO) of the Treadway
Commission, which of the following components of enterprise risk management addresses
an entity’s commitment to core values?
Governance and Culture
MCQ-06754
Able Corporation owns numerous businesses along the coast of Florida. The company’s
management has identified business interruption events as a potential risk resulting from
storm damage caused by hurricanes. The company elects to not only insure its properties
but to “buy down” standard deductibles with additional premium. Able’s response to
potential risks is known as:
Sharing
MCQ-06253
The successful and profitable launch of a new product line by an entity represents:
Value CREATION
MCQ-06254
A company’s ability to maintain market share with high customer satisfaction and sustained
profitability is an example of:
Value PRESERVATION
MCQ-06256
Baker Corp. paid a dividend to its shareholders following the achievement of record
products. Dividend distributions represent:
Value REALIZATION
MCQ-06255
Arbor Fashions launched a line of accessories to accompany its successful line of blouses
and slacks. The company’s accessory line was unsuccessful and was discontinued six
months after launch. The failure of Arbor’s new product line represents:
Value EROSION
MCQ-06450
Which of the following is not a goal of an Enterprise Risk Management framework (ERM)?
Avoid adverse publicity and damage to the entity’s reputation.
MCQ-06251
The core values of an entity most closely correlate with its:
Culture
MCQ-06252
The mission and vision of an organization most closely correlate with an entity’s:
Strategy.
MCQ-08361
The Enterprise Risk Management−Integrated Framework of the Committee of Sponsoring
Organizations (COSO) is best defined as:
The culture, capabilities, and practices, integrated with strategy-setting and performance, that organizations rely on to manage risk in creating, preserving, and realizing value.
MCQ-12465
According to the COSO Enterprise Risk Management—Integrated Framework, uncertainty
in enterprise risk management refers to:
The state of not knowing how or if potential events may manifest.
MCQ-06992
Each of the following is a limitation of enterprise risk management (ERM), except
ERM can provide ABSOLUTE ASSURANCE with respect to objective categories
MCQ-06262
The ability of an entity to withstand the impact of large-scale events refers to:
ORGANIZATIONAL SUSTAINABILITY
Organizational sustainability is the ability of an entity to withstand
the impact of large-scale events.
MCQ-09005
COSO’s enterprise risk management framework encompasses each of the following,
except:
Decreasing inherent risk appetite.
MCQ-06263
Which of the following items is one of the five components of COSO’s Enterprise Risk
Management framework?
Performance
MCQ-06490
The Enterprise Risk Management Integrated Framework states that an organization must
identify events, both positive and negative, as part of its risk management program. Which
of the following is true with regard to events?
Event identification occurs AFTER the development of objectives
MCQ-06257
The governance and culture component of COSO’s Enterprise Risk Management
framework is supported by all of the following principles except:
Analyzes business context.
MCQ-06259
As an organization commits to attracting, developing, and retaining capable individuals, it is
supporting which of the following component of COSO’s Enterprise Risk Management
framework?
Governance and culture
MCQ-05002
According to COSO, which of the following identifies the group directly responsible for the
implementation and developMENT of the enterprise risk management framework?
Management
MCQ-04308
According to COSO’s Enterprise Risk Management Framework, which of the following is
an essential element of the governance and culture?
Commitment to core values
MCQ-04309
An internal auditor is considering a client’s organizational structure as it affects the
ethical climate established by company management. Each of the following considerations
is valid in this regard, except:
A company that is highly centralized will have a more diverse ethical culture than
a company that is decentralized.
MCQ-06258
As an organization defines its risk APPETITE, it is supporting which of the following
components of COSO’s Enterprise Risk Management framework?
Strategy and objective-SETTING
MCQ-06770
The Daphne Corporation evaluates employees with responsibilities for financial reporting
for fulfillment of those responsibilities for compensation and PROMOTION PURPOSES. The
company’s policies support the idea that:
HUMAN RESOURCES practices should be designed to facilitate effective internal
control over financial reporting.
MCQ-06261
The strategy and objective-setting component of COSO’s Enterprise Risk Management
framework is supported by which of the following principles?
Analyzes BUSINESS CONTEXT
