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Internal Control of the COSO Framework
Exam Questions And Answers
The 5 elements of internal control of the COSO Framework - Answers✔1. Control Environment
2. Risk Assessment
3. Control Activities
4. Information and Communication
5. Monitoring
Control Environment - Answers✔The ______________ is the foundation of internal control and refers to
the organization's integrity, attitudes towards ethical dealings and general competence.
Control Environment - Answers✔It impacts how authority is granted and responsibilities are assigned
True - Answers✔T/F: The most important aspects of the control environment are management's
attitude and incentives.
Risk Assessment - Answers✔Management is responsible for establishing a set of procedures to identify,
analyze and manage risks
Control Activities - Answers✔If management feels that it is cost effective to attempt to reduce a risk,
then _____________ are performed to reduce the risk in question.
Controls - Answers✔________ vary and are affected by the level of personnel exercising the control, the
extent of automation for the activity, the information system in place, and the subjectivity of the risk
condition being monitored.
Information and Communication - Answers✔Important _____________ is identified, captured and made
available to the proper persons in the organization. Effective _______________ ensures that all parties
understand their role in the system, and that problems are brought to the attention of the proper level
of the organization for corrective action.
Monitoring - Answers✔is the process used by the organization to track the effectiveness and efficiency
of internal control.
Control Environment - Answers✔Ex: Management philosophy and operating style
Control Environment - Answers✔Organizational structure
Control Environment - Answers✔Corporate governance
ALL RIGHTS RESERVED.
Internal Control of the COSO Framework
Exam Questions And Answers
The 5 elements of internal control of the COSO Framework - Answers✔1. Control Environment
2. Risk Assessment
3. Control Activities
4. Information and Communication
5. Monitoring
Control Environment - Answers✔The ______________ is the foundation of internal control and refers to
the organization's integrity, attitudes towards ethical dealings and general competence.
Control Environment - Answers✔It impacts how authority is granted and responsibilities are assigned
True - Answers✔T/F: The most important aspects of the control environment are management's
attitude and incentives.
Risk Assessment - Answers✔Management is responsible for establishing a set of procedures to identify,
analyze and manage risks
Control Activities - Answers✔If management feels that it is cost effective to attempt to reduce a risk,
then _____________ are performed to reduce the risk in question.
Controls - Answers✔________ vary and are affected by the level of personnel exercising the control, the
extent of automation for the activity, the information system in place, and the subjectivity of the risk
condition being monitored.
Information and Communication - Answers✔Important _____________ is identified, captured and made
available to the proper persons in the organization. Effective _______________ ensures that all parties
understand their role in the system, and that problems are brought to the attention of the proper level
of the organization for corrective action.
Monitoring - Answers✔is the process used by the organization to track the effectiveness and efficiency
of internal control.
Control Environment - Answers✔Ex: Management philosophy and operating style
Control Environment - Answers✔Organizational structure
Control Environment - Answers✔Corporate governance
