WILEY CPA BEC QUESTIONS AND
ANSWERS WITH VERIFIED SOLUTIONS
100% CORRECT RATED A+ NEWLY
UPDATED 2025
Define general controls - ANSWER✔✔ Controls over the environment as a whole.
Apply to all functions, not just specific accounting applications. General controls
help ensure that data integrity is maintained.
Define feed forward control - ANSWER✔✔ A process in which futures results are
projected based on current and past information and, if the future results are
undesirable, the inputs to the system are changed to avoid the projected outcome.
Many inventory ordering systems are essentially feed-forward controls: The
system projects product sales over the relevant time period, identifies the current
inventory level, and orders inventory sufficient to fulfill the sales demand.
define feedback controls - ANSWER✔✔ A procedure in which the results of a
process are evaluated and, if the results are undesirable, the process is adjusted to
correct the results. Most detective controls are also feedback controls.
define internal control - ANSWER✔✔ A process, effected by the entity's Board of
Directors, management, and other personnel, that is designed to provide reasonable
assurance regarding the achievement of objectives in the following categories:
effectiveness and efficiency of operations, reliability of financial reporting, and
compliance with applicable laws and regulations.
Define "risk response" (according to the COSE ERM model). - ANSWER✔✔
management's response to risk. Depends on management's risk appetite. May
include risk avoidance, reduction, sharing or acceptance.
,Define "event identification" (according to the COSO ERM model). -
ANSWER✔✔ identifying events that might affect - either positively or negatively
- the organization's ability to meet its objectives
define "objective setting" (according to the COSO ERM model) - ANSWER✔✔ a
company must establish objectives at four level (strategic, operation, reporting, &
compliance)
define "control activities" (according to the COSO internal and ERM frameworks)
- ANSWER✔✔ one of five components of internal control. It relates to the policies
and procedures that ensure that organizational actions address key risk related to
the achievement of management's objectives
define strategic objectives (according to the COSO model) - ANSWER✔✔ one of
the five components of internal control. This component ensures the ongoing
reliability of information and control processes by monitoring and testing the
control system
define "information and communication" (according to the COSO internal control
framework) - ANSWER✔✔ one of five components of internal control. Enables an
organization's personnel to identify, process, and exchange the information needed
to manage and control operations
define "risk assessment" (according to the COSO internal control framework) -
ANSWER✔✔ one of five components of internal control. The process of
identifying, analyzing, and managing the risk related to achieving the
organization's objectives
define "control environment" (according to the COSO internal control framework)
- ANSWER✔✔ one of five components of internal control. Encompasses
,management's philosophy toward controls, organizational structure, system of
authority and responsibility, personnel practices, and policies and procedures. The
core or foundation of any system of internal control
define organizational policies - ANSWER✔✔ The organization's control activities
that establish stakeholder expectations regarding conduct and operations
Define accountability in the context of designing internal control. - ANSWER✔✔
Holding individual accountable for their internal control responsibilities
define "competence" in the context of designing internal control - ANSWER✔✔ a
commitment to attract, develop, and retain highly qualified individuals consistent
with achieving organizational objectives. It includes establishing policies,
assessing competencies and planning for turnover and succession
how does monitoring benefit corporate governance? - ANSWER✔✔ Monitoring is
the core, underlying control component in the COSO ERM model. Controls
degrade over time, technologies change, and people forget or get lazy. Because of
this, monitoring is essential to maintaining strong internal control and effective risk
management.
define key controls - ANSWER✔✔ Controls that are most important to monitor in
order to support a conclusion about the internal control system's ability to manage
or mitigate meaningful risks.
define evaluator - ANSWER✔✔ An individual who monitors internal control.
Must have skills, knowledge, and authority sufficient to understand risks and
identify the controls needed to manage those risks. Two most important attributes
are competence and objectivity.
, define "competence" in relation to a control evaluator - ANSWER✔✔ refers to the
evaluator's knowledge of the control and related processes, including how controls
should operate and what constitutes a control deficiency
the three elements of establishing a foundation for control are: - ANSWER✔✔ 1.
tone at the top
2. organizational structure
3. baseline understanding of control effectiveness
List the four activities that comprise the design and execution of control
monitoring. - ANSWER✔✔ 1. prioritize risks
2. identify controls
3. identify persuasive information about controls
4. implement monitoriing procedures
name the three activities that comprise assessing and reporting on control
monitoring - ANSWER✔✔ 1. prioritize findings
2. report results as appropriate
3. follow up to implement corrective actions
Define enterprise risk management - ANSWER✔✔ According to COSO, the
methods and processes used by organizations to identify and manage the events
and circumstances that influence the organization's ability to achieve its objectives
what is meant by the tone at the top? - ANSWER✔✔ Extent to which top
management is ethical and is pro-active in establishing the organization's ethical
tone and culture.
ANSWERS WITH VERIFIED SOLUTIONS
100% CORRECT RATED A+ NEWLY
UPDATED 2025
Define general controls - ANSWER✔✔ Controls over the environment as a whole.
Apply to all functions, not just specific accounting applications. General controls
help ensure that data integrity is maintained.
Define feed forward control - ANSWER✔✔ A process in which futures results are
projected based on current and past information and, if the future results are
undesirable, the inputs to the system are changed to avoid the projected outcome.
Many inventory ordering systems are essentially feed-forward controls: The
system projects product sales over the relevant time period, identifies the current
inventory level, and orders inventory sufficient to fulfill the sales demand.
define feedback controls - ANSWER✔✔ A procedure in which the results of a
process are evaluated and, if the results are undesirable, the process is adjusted to
correct the results. Most detective controls are also feedback controls.
define internal control - ANSWER✔✔ A process, effected by the entity's Board of
Directors, management, and other personnel, that is designed to provide reasonable
assurance regarding the achievement of objectives in the following categories:
effectiveness and efficiency of operations, reliability of financial reporting, and
compliance with applicable laws and regulations.
Define "risk response" (according to the COSE ERM model). - ANSWER✔✔
management's response to risk. Depends on management's risk appetite. May
include risk avoidance, reduction, sharing or acceptance.
,Define "event identification" (according to the COSO ERM model). -
ANSWER✔✔ identifying events that might affect - either positively or negatively
- the organization's ability to meet its objectives
define "objective setting" (according to the COSO ERM model) - ANSWER✔✔ a
company must establish objectives at four level (strategic, operation, reporting, &
compliance)
define "control activities" (according to the COSO internal and ERM frameworks)
- ANSWER✔✔ one of five components of internal control. It relates to the policies
and procedures that ensure that organizational actions address key risk related to
the achievement of management's objectives
define strategic objectives (according to the COSO model) - ANSWER✔✔ one of
the five components of internal control. This component ensures the ongoing
reliability of information and control processes by monitoring and testing the
control system
define "information and communication" (according to the COSO internal control
framework) - ANSWER✔✔ one of five components of internal control. Enables an
organization's personnel to identify, process, and exchange the information needed
to manage and control operations
define "risk assessment" (according to the COSO internal control framework) -
ANSWER✔✔ one of five components of internal control. The process of
identifying, analyzing, and managing the risk related to achieving the
organization's objectives
define "control environment" (according to the COSO internal control framework)
- ANSWER✔✔ one of five components of internal control. Encompasses
,management's philosophy toward controls, organizational structure, system of
authority and responsibility, personnel practices, and policies and procedures. The
core or foundation of any system of internal control
define organizational policies - ANSWER✔✔ The organization's control activities
that establish stakeholder expectations regarding conduct and operations
Define accountability in the context of designing internal control. - ANSWER✔✔
Holding individual accountable for their internal control responsibilities
define "competence" in the context of designing internal control - ANSWER✔✔ a
commitment to attract, develop, and retain highly qualified individuals consistent
with achieving organizational objectives. It includes establishing policies,
assessing competencies and planning for turnover and succession
how does monitoring benefit corporate governance? - ANSWER✔✔ Monitoring is
the core, underlying control component in the COSO ERM model. Controls
degrade over time, technologies change, and people forget or get lazy. Because of
this, monitoring is essential to maintaining strong internal control and effective risk
management.
define key controls - ANSWER✔✔ Controls that are most important to monitor in
order to support a conclusion about the internal control system's ability to manage
or mitigate meaningful risks.
define evaluator - ANSWER✔✔ An individual who monitors internal control.
Must have skills, knowledge, and authority sufficient to understand risks and
identify the controls needed to manage those risks. Two most important attributes
are competence and objectivity.
, define "competence" in relation to a control evaluator - ANSWER✔✔ refers to the
evaluator's knowledge of the control and related processes, including how controls
should operate and what constitutes a control deficiency
the three elements of establishing a foundation for control are: - ANSWER✔✔ 1.
tone at the top
2. organizational structure
3. baseline understanding of control effectiveness
List the four activities that comprise the design and execution of control
monitoring. - ANSWER✔✔ 1. prioritize risks
2. identify controls
3. identify persuasive information about controls
4. implement monitoriing procedures
name the three activities that comprise assessing and reporting on control
monitoring - ANSWER✔✔ 1. prioritize findings
2. report results as appropriate
3. follow up to implement corrective actions
Define enterprise risk management - ANSWER✔✔ According to COSO, the
methods and processes used by organizations to identify and manage the events
and circumstances that influence the organization's ability to achieve its objectives
what is meant by the tone at the top? - ANSWER✔✔ Extent to which top
management is ethical and is pro-active in establishing the organization's ethical
tone and culture.
