Internal Controls and COSO Framework
2025/2026 Exam Questions and Verified
Answers | Already Graded A+
hierarchy of the 5 components of the COSO framework - 🧠ANSWER ✔✔1.
control environment
2. entity's risk assessment
3. control activities
4. information and communication
5. monitoring activities
control environment - 🧠ANSWER ✔✔the set of standards, processes and
structures that provide the basis for carrying out internal control across the
organization
entity's risk assessment - 🧠ANSWER ✔✔dynamic and iterative process for
identifying and analyzing risks to achieving the entity's objectives, thereby
forming a basis for determining how risks should be managed
1
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
, control activities - 🧠ANSWER ✔✔the actions established by policies and
procedures to help ensure that management directives to mitigate risks to
the achievement of objectives are carried out
information and communication - 🧠ANSWER ✔✔necessary for the entity to
carry out internal control responsibilities in support of achievement of its
objectives
monitoring activities - 🧠ANSWER ✔✔ongoing evaluations, separate
evaluations, or some combination of the two are used to ascertain whether
each of the five components of internal control, including controls to effect
the principles within each component, are present and functioning
three objectives of internal control - 🧠ANSWER ✔✔1. operating
2. reporting
3. compliance
structure of the entity (top to bottom) - 🧠ANSWER ✔✔1. entity level
2. division
3. operating unit
4. function
2
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
2025/2026 Exam Questions and Verified
Answers | Already Graded A+
hierarchy of the 5 components of the COSO framework - 🧠ANSWER ✔✔1.
control environment
2. entity's risk assessment
3. control activities
4. information and communication
5. monitoring activities
control environment - 🧠ANSWER ✔✔the set of standards, processes and
structures that provide the basis for carrying out internal control across the
organization
entity's risk assessment - 🧠ANSWER ✔✔dynamic and iterative process for
identifying and analyzing risks to achieving the entity's objectives, thereby
forming a basis for determining how risks should be managed
1
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
, control activities - 🧠ANSWER ✔✔the actions established by policies and
procedures to help ensure that management directives to mitigate risks to
the achievement of objectives are carried out
information and communication - 🧠ANSWER ✔✔necessary for the entity to
carry out internal control responsibilities in support of achievement of its
objectives
monitoring activities - 🧠ANSWER ✔✔ongoing evaluations, separate
evaluations, or some combination of the two are used to ascertain whether
each of the five components of internal control, including controls to effect
the principles within each component, are present and functioning
three objectives of internal control - 🧠ANSWER ✔✔1. operating
2. reporting
3. compliance
structure of the entity (top to bottom) - 🧠ANSWER ✔✔1. entity level
2. division
3. operating unit
4. function
2
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
