COSO & ERM & Mnemonics: Questions & Solutions
COSO Right Ans - Committee of Sponsoring Organizations
What is in COSO? Right Ans - 3 Objectives (ORC)
5 components (CRIME)
17 Principles
3 Objectives of COSO - ORC Right Ans - O-Operations Objectives
R-Reporting Objectives
C-Compliance Objectives
Operations Objectives Right Ans - Relate to the Effectiveness and Efficiency
of an Entity's operations
Reporting Objectives Right Ans - Pertain to the reliability, timeliness, and
transparency of an entity's external and internal financial and nonfinacial
reporting as established by regulators, accounting standard setters, or the
firm's internal policies (Focus of COSO)
Compliance Objectives Right Ans - Established to ensure the entity is
adhering to all applicable laws and regulations
5 Components of COSO - CRIME Right Ans - C-Control Environment
R-Risk Assessment by Management
I-Information and Communication Systems
M-Monitoring
E-Existing Control Activities
Control Environment-(C)rime Right Ans - (EBOCA)
Includes the Processes, structures, and standards that provide the foundation
for an entity to establish a system of internal control.
Control Environment - (C)rime - EBOCA Right Ans - E-Commitment to
ETHICS and Integrity
B-Board Independence and Oversight
O-Organizational Structure
C-Commitment to Competence
COSO Right Ans - Committee of Sponsoring Organizations
What is in COSO? Right Ans - 3 Objectives (ORC)
5 components (CRIME)
17 Principles
3 Objectives of COSO - ORC Right Ans - O-Operations Objectives
R-Reporting Objectives
C-Compliance Objectives
Operations Objectives Right Ans - Relate to the Effectiveness and Efficiency
of an Entity's operations
Reporting Objectives Right Ans - Pertain to the reliability, timeliness, and
transparency of an entity's external and internal financial and nonfinacial
reporting as established by regulators, accounting standard setters, or the
firm's internal policies (Focus of COSO)
Compliance Objectives Right Ans - Established to ensure the entity is
adhering to all applicable laws and regulations
5 Components of COSO - CRIME Right Ans - C-Control Environment
R-Risk Assessment by Management
I-Information and Communication Systems
M-Monitoring
E-Existing Control Activities
Control Environment-(C)rime Right Ans - (EBOCA)
Includes the Processes, structures, and standards that provide the foundation
for an entity to establish a system of internal control.
Control Environment - (C)rime - EBOCA Right Ans - E-Commitment to
ETHICS and Integrity
B-Board Independence and Oversight
O-Organizational Structure
C-Commitment to Competence
