Coso Test Questions & Answers 2026

Coso Test Questions & Answers 2026 The COSO framework treats internal control as a process designed to provide reasonable assurance regarding the achievement of objectives related to A. Reliability of financial reporting. B. Effectiveness and efficiency of operations. C. Compliance with applicable laws and regulations. D. All of the answers are correct. - answer-D Which of the following statements is correct regarding corporate compensation systems and related bonuses? 1. A bonus system should be considered part of the control environment of an organization and should be considered in formulating a report on internal control. 2. Compensation systems are not part of an organization's control system and should not be reported as such. 3. An audit of an organization's compensation system should be performed independently of an audit of the control system over other functions that impact corporate bonuses. A. 1 only. B. 2 only. C. 3 only. D. 2 and 3 only. - answer-A An organization's directors, management, external auditors, and internal auditors all play important roles in creating a proper control environment. Senior management is primarily responsible for A. Establishing a proper organizational culture and specifying a system of internal control. B. Designing and operating a control system that provides reasonable assurance that established objectives and goals will be achieved. C. Ensuring that external and internal auditors adequately monitor the control environment. D. Implementing and monitoring controls designed by the board of directors. - answer-A Internal control can provide only reasonable assurance that the organization's objectives will be met efficiently and effectively. One factor limiting the likelihood of achieving those objectives is that A. The internal auditor's primary responsibility is the detection of fraud. B. The board is active and independent.