Revised 1 - Corporate Governance Flashcards
1
Q
What are the elements of the control environment?
A
Integrity & Ethics The Board of Directors & Audit Committee Organizational Structure Competence Management's Operating Style Authority & Roles of Responsibilities HR Policies
2
Q
What are control activities?
A
A component of Internal Control that includes actions being taken to promote the control environment.
3
Q
What is the significance of the Information and Communication aspect of Internal Control?
A
Management must have access to relevant and timely information to make good decisions.
4
Q
What activities does the COSO framework for enterprise risk management include?
A
Identifies Risk Factors Promotes Risk Response Decisions Compares Management Risk vs. Shareholder Goals Aids in evaluating opportunities Promotes Quicker Capital movement
Does NOT eliminate all risk
