COSO 2025/2026 Exam Questions and
Detailed Answers | Get it 100% Correct
Answers
What are the five elements of internal control according to COSO)? -
🧠ANSWER ✔✔Monitoring, control activities, risk assessment, control
environment (foundation)
Control Environment - 🧠ANSWER ✔✔Managements philosophy toward
controls, organizational structure, system of authority and responsibility,
personal practices, policies, etc. This component is the foundation of any
system of internal control.
Risk Assessment - 🧠ANSWER ✔✔Process of identifying, analyzing, and
managing risks involved in achieving the organization's objectives.
Control Activities - 🧠ANSWER ✔✔Policies and procedures that ensure that
actions are taken to address the risks related to the achievement of
management's objectives.
1
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,Five Principles of Control Environment - 🧠ANSWER ✔✔1. Integrity and
ethical values; 2. Board of directors independent of management; 3.
Management establishes oversight over achieving objectives; 4.
Competence; Management attracts, develops and retains good employees;
5. Accountability of individuals.
Five Principles of Control Environment; Integrity and Ethical Values -
🧠ANSWER ✔✔"Tone at the Top"
Five Principles of Control Environment; Board of Directors - 🧠ANSWER
✔✔Independent of management, oversees development and monitoring of
internal control including 1. clear board of directors overnight
responsibilities and independence. 2. Evidence and application of relevant
expertise.
Five Principles of Control Environment; Management - 🧠ANSWER
✔✔Strive to achieve objectives
Five Principles of Control Environment; Competence - 🧠ANSWER
✔✔Commitment to attract, develop and retain competent individuals
Five Principles of Control Environment; Accountability - 🧠ANSWER
✔✔Individuals held accountable for internal control responsibilities
2
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STATEMENT. ALL RIGHTS RESERVED
, Risk Assessment; Four Principles; Objectives - 🧠ANSWER ✔✔Objectives,
Assessment, Fraud, Change Management
Risk Assessment; Four Principles; Objectives; - 🧠ANSWER
✔✔Organizational objectives should consider risk tolerance, materiality in
relation to risk assessment, risks related to the organization's ability to
comply with standards, frameworks, laws and regulations, risks related to
operational and financial performance goals and risks in committing
resources
Risk Assessment; Four Principles; Assessment - 🧠ANSWER ✔✔Managing
risk involves including management in risk assessment, consider entity
levels, analyze internal and external factors, estimate risk importance, and
develop appropriate risk responses.
Risk Assessment; Four Principles; Change Management - 🧠ANSWER
✔✔Organization identifies and assesses and changes in the external
environment, business model and organizational leadership that could
impact the system of internal control.
Control Activities; Three Principles - 🧠ANSWER ✔✔Risk Reduction,
technology controls,policies
3
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
Detailed Answers | Get it 100% Correct
Answers
What are the five elements of internal control according to COSO)? -
🧠ANSWER ✔✔Monitoring, control activities, risk assessment, control
environment (foundation)
Control Environment - 🧠ANSWER ✔✔Managements philosophy toward
controls, organizational structure, system of authority and responsibility,
personal practices, policies, etc. This component is the foundation of any
system of internal control.
Risk Assessment - 🧠ANSWER ✔✔Process of identifying, analyzing, and
managing risks involved in achieving the organization's objectives.
Control Activities - 🧠ANSWER ✔✔Policies and procedures that ensure that
actions are taken to address the risks related to the achievement of
management's objectives.
1
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
,Five Principles of Control Environment - 🧠ANSWER ✔✔1. Integrity and
ethical values; 2. Board of directors independent of management; 3.
Management establishes oversight over achieving objectives; 4.
Competence; Management attracts, develops and retains good employees;
5. Accountability of individuals.
Five Principles of Control Environment; Integrity and Ethical Values -
🧠ANSWER ✔✔"Tone at the Top"
Five Principles of Control Environment; Board of Directors - 🧠ANSWER
✔✔Independent of management, oversees development and monitoring of
internal control including 1. clear board of directors overnight
responsibilities and independence. 2. Evidence and application of relevant
expertise.
Five Principles of Control Environment; Management - 🧠ANSWER
✔✔Strive to achieve objectives
Five Principles of Control Environment; Competence - 🧠ANSWER
✔✔Commitment to attract, develop and retain competent individuals
Five Principles of Control Environment; Accountability - 🧠ANSWER
✔✔Individuals held accountable for internal control responsibilities
2
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
, Risk Assessment; Four Principles; Objectives - 🧠ANSWER ✔✔Objectives,
Assessment, Fraud, Change Management
Risk Assessment; Four Principles; Objectives; - 🧠ANSWER
✔✔Organizational objectives should consider risk tolerance, materiality in
relation to risk assessment, risks related to the organization's ability to
comply with standards, frameworks, laws and regulations, risks related to
operational and financial performance goals and risks in committing
resources
Risk Assessment; Four Principles; Assessment - 🧠ANSWER ✔✔Managing
risk involves including management in risk assessment, consider entity
levels, analyze internal and external factors, estimate risk importance, and
develop appropriate risk responses.
Risk Assessment; Four Principles; Change Management - 🧠ANSWER
✔✔Organization identifies and assesses and changes in the external
environment, business model and organizational leadership that could
impact the system of internal control.
Control Activities; Three Principles - 🧠ANSWER ✔✔Risk Reduction,
technology controls,policies
3
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
