COSO & ERM ******** & Mnemonics 100% Solved

COSO & ERM ******** & Mnemonics 100%
Solved
Reporting Objectives Correct 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 Correct Ans-Established to ensure the entity is adhering to all
applicable laws and regulations



5 Components of COSO - CRIME Correct Ans-C-Control Environment

R-Risk Assessment by Management

I-Information and Communication Systems

M-Monitoring

E-Existing Control Activities



Control Environment-(C)rime Correct 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 Correct Ans-E-Commitment to ETHICS and
Integrity

B-Board Independence and Oversight

O-Organizational Structure

, C-Commitment to Competence

A-Accountability



Risk Assessment -c(R)ime Correct Ans-Make and entity (SAFR)




Risk Assessment -c(R)ime - SAFR Correct Ans-S-Specific Objectives

A-Identify and ASSESS Changes

F-Consider Potential for FRAUD

R-Identify and Analyse RISK



Information and Communication - cr(I)me Correct Ans-(OIE)

Between internal and external parties



Information and Communication - cr(I)me - OIE Correct Ans-O-Obtain and Use Information

I-Internally Communicate Information

E-Communicate with EXTERNAL Parties



Monitoring Activities - cri(M)e Correct Ans-(So D) Monitor SoD or grass won't grow




Monitoring Activities - cri(M)e - So D Correct Ans-So-ONGOING and/or SEPARATE
evaluations

D-Communication of DEFICIENCIES