COSO COMPREHENSIVE EXAM SCRIPT COMPLETE QUESTIONS VERIFIED SOLUTIONS.pdf

COSO COMPREHENSIVE EXAM SCRIPT COMPLETE QUESTIONS VERIFIED SOLUTIONS




Question:
What is the most widely recognized internal control framework?

Answer:
The COSO framework.



Question:
What does COSO stand for?

Answer:
Committee of Sponsoring Organizations of the Treadway Commission.



Question:
What is the primary focus of COSO?

Answer:
To provide frameworks and guidance on enterprise risk management, internal control, and fraud
deterrence.



Question:
What is the Green Book?

Answer:
Standards of Internal Control for Federal Government.



Question:
What does CFR §200.303 require of non-Federal entities?

, Answer:
To establish and maintain effective internal control over Federal awards to ensure compliance with
statutes, regulations, and terms.



Question:
What are the five interrelated components of the COSO framework?

Answer:
Control Environment, Risk Assessment, Control Activities, Information and Communication, and
Monitoring.



Question:
What does the Control Environment component refer to?

Answer:
The overall attitude, awareness, and actions of officials and management regarding the internal
control system.



Question:
What is the purpose of Risk Assessment in internal control?

Answer:
To identify and assess risks that could affect the achievement of objectives.



Question:
What are Control Activities?

Answer:
Actions put in place by management to reduce risk, including detective and preventative controls.



Question: