COSO 2025/2026 Exam Questions and
Answers | 100% Pass
D - 🧠ANSWER ✔✔[ 1 ] 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.
A - 🧠ANSWER ✔✔[ 2 ] Which of the following statements is correct
regarding corporate compensation systems and related bonuses?
1
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STATEMENT. ALL RIGHTS RESERVED
,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.
A - 🧠ANSWER ✔✔[ 3 ] 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
2
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
, 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.
C - 🧠ANSWER ✔✔[ 4 ] 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.
C. The cost of internal control should not exceed its benefits.
3
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
Answers | 100% Pass
D - 🧠ANSWER ✔✔[ 1 ] 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.
A - 🧠ANSWER ✔✔[ 2 ] Which of the following statements is correct
regarding corporate compensation systems and related bonuses?
1
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
,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.
A - 🧠ANSWER ✔✔[ 3 ] 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
2
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
, 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.
C - 🧠ANSWER ✔✔[ 4 ] 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.
C. The cost of internal control should not exceed its benefits.
3
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
