COSO EXAM QUESTIONS AND 100%
VERIFIED ANSWERS
127 QUESTIONS AND ANSWERS
What are the five elements of internal control according to COSO)? -
ANSWER Monitoring, control activities, risk assessment, control environment
(foundation)
Control Environment - ANSWER Managements philosophy toward controls,
organizational structure, system of authority and responsibility, personal
practices, policies, etc. This component is the foundation of any system of
internal control.
Risk Assessment - ANSWER The process of identifying, analyzing and
managing risks that may impact on the achievement of the organisation's
objectives.
Control Activities - ANSWER Policies and procedures that ensure actions are
taken to mitigate risks that may impact on management's objectives.
Five Principles of Control Environment - ANSWER 1. Integrity and ethical
values; 2. Board of directors independent of management; 3. Management
establishes oversight over achieving objectives; 4. Competence; Management
attracts, develops and retains good employees; 5. Accountability of individuals.
Five Principles of Control Environment; Integrity and Ethical Values -
ANSWER "Tone at the Top"
,Five Principles of Control Environment; Board of Directors - ANSWER
Independent of management, oversees development and monitoring of internal
control including 1. clear board of directors overnight responsibilities and
independence. 2. Evidence and application of relevant expertise.
Five Principles of Control Environment; Management - ANSWER Strive to
achieve objectives
Five Principles of Control Environment; Competence - ANSWER
Commitment to attract, develop and retain competent individuals
Five Principles of Control Environment; Accountability - ANSWER
Individuals held accountable for internal control responsibilities
Risk Assessment; Four Principles; Objectives - ANSWER Objectives,
Assessment, Fraud, Change Management
Risk Assessment; Four Principles; Objectives; - ANSWER Organizational
objectives must take into account risk tolerance, materiality regarding the risk
assessment, risks on the capability of the organization to meet the set standards,
frameworks, laws and regulations, risks regarding operational and financial
performance goals and risks on commitment of resources.
Risk Assessment; Four Principles; Assessment - ANSWER To manage risk,
the organization shall include management in the process of risk assessment,
consider the entity levels, analyze internal and external factors, estimate the
importance of risk, and develop suitable risk responses.
, Risk Assessment; Four Principles; Change Management - ANSWER The
organization identifies and assesses changes in the external environment,
business model, and organizational leadership that may have an impact on the
system of internal control.
Control Activities; Three Principles - ANSWER Risk Reduction, technology
controls,policies
Control Activities; Three Principles; Risk Reduction - ANSWER Control
activities reduce the risks to the achievement of objectives to acceptable levels.
Examples include evaluating mix of control activity tpes like manual and
automated, preventive and detective. Or segregatexion of duties.
Information & Communication; Three Principles - ANSWER Quality of
information of supporting controls, internal and external communications
Monitoring; Two Principles - ANSWER Ongoing and periodic evaluations,
address control deficiencies
What types of buyers takes precedence over perfected secured interests? -
ANSWER Buyers in the ordinary course of business.
Risk assessment materiality - ANSWER The determination of how large of a
risk poses a threat to objectives
Organizational policies - ANSWER The organization's control activities that
establish stakeholder expectations regarding conduct and operations.
VERIFIED ANSWERS
127 QUESTIONS AND ANSWERS
What are the five elements of internal control according to COSO)? -
ANSWER Monitoring, control activities, risk assessment, control environment
(foundation)
Control Environment - ANSWER Managements philosophy toward controls,
organizational structure, system of authority and responsibility, personal
practices, policies, etc. This component is the foundation of any system of
internal control.
Risk Assessment - ANSWER The process of identifying, analyzing and
managing risks that may impact on the achievement of the organisation's
objectives.
Control Activities - ANSWER Policies and procedures that ensure actions are
taken to mitigate risks that may impact on management's objectives.
Five Principles of Control Environment - ANSWER 1. Integrity and ethical
values; 2. Board of directors independent of management; 3. Management
establishes oversight over achieving objectives; 4. Competence; Management
attracts, develops and retains good employees; 5. Accountability of individuals.
Five Principles of Control Environment; Integrity and Ethical Values -
ANSWER "Tone at the Top"
,Five Principles of Control Environment; Board of Directors - ANSWER
Independent of management, oversees development and monitoring of internal
control including 1. clear board of directors overnight responsibilities and
independence. 2. Evidence and application of relevant expertise.
Five Principles of Control Environment; Management - ANSWER Strive to
achieve objectives
Five Principles of Control Environment; Competence - ANSWER
Commitment to attract, develop and retain competent individuals
Five Principles of Control Environment; Accountability - ANSWER
Individuals held accountable for internal control responsibilities
Risk Assessment; Four Principles; Objectives - ANSWER Objectives,
Assessment, Fraud, Change Management
Risk Assessment; Four Principles; Objectives; - ANSWER Organizational
objectives must take into account risk tolerance, materiality regarding the risk
assessment, risks on the capability of the organization to meet the set standards,
frameworks, laws and regulations, risks regarding operational and financial
performance goals and risks on commitment of resources.
Risk Assessment; Four Principles; Assessment - ANSWER To manage risk,
the organization shall include management in the process of risk assessment,
consider the entity levels, analyze internal and external factors, estimate the
importance of risk, and develop suitable risk responses.
, Risk Assessment; Four Principles; Change Management - ANSWER The
organization identifies and assesses changes in the external environment,
business model, and organizational leadership that may have an impact on the
system of internal control.
Control Activities; Three Principles - ANSWER Risk Reduction, technology
controls,policies
Control Activities; Three Principles; Risk Reduction - ANSWER Control
activities reduce the risks to the achievement of objectives to acceptable levels.
Examples include evaluating mix of control activity tpes like manual and
automated, preventive and detective. Or segregatexion of duties.
Information & Communication; Three Principles - ANSWER Quality of
information of supporting controls, internal and external communications
Monitoring; Two Principles - ANSWER Ongoing and periodic evaluations,
address control deficiencies
What types of buyers takes precedence over perfected secured interests? -
ANSWER Buyers in the ordinary course of business.
Risk assessment materiality - ANSWER The determination of how large of a
risk poses a threat to objectives
Organizational policies - ANSWER The organization's control activities that
establish stakeholder expectations regarding conduct and operations.
